A new study by financial firm Bumper has found that millennials are the demographic most likely to cover their car repair and maintenance costs with “buy now, pay later” solutions.
The analysis found that the average age of drivers opting for “Buy Now, Pay Later” (BNPL) offers from merchants is 43 years.
This value drops to 38 if drivers use independent workshops.
However, the average varies depending on the amount of repair costs: the average age of motorists who defer bills between £2,000 and £4,000 is 47, the average age for bills between £4,000 and £6,000 is 49, and the average age when bills exceed £6,000 is 50.
Buy now, pay later
Bumper, which works with more than 5,000 dealers and workshops in the UK, Spain, Germany, the Netherlands and the Republic of Ireland, also announced that it has now helped more than 600,000 drivers defer repair and maintenance costs worth over £460 million.
CEO and co-founder James Jackson said:
“When it comes to paying garage bills, budget-conscious millennials have seen the benefits of spreading their spending with BNPL rather than accumulating credit card debt. Car owners born in the early 1980s are typically at a stage of life where they make monthly mortgage or rent payments and have a young family, so it makes perfect sense to spread your car costs over several months, interest-free.”
He added: “Our research also shows that BNPL is not limited to millennials, as older Gen X owners are likely to use it to pay more expensive bills.”
