Millennials most likely to use buy now, pay later repair schemes
New research from finance company Bumper has revealed that millennials are the most likely demographic to manage car repair and service 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 dealerships is 43.
That drops to 38 when drivers use independent workshops.
However, the average varies depending on the cost of the repair, with 47 the average age of motorists deferring bills from £2,000 to £4,000, 49 the average age for bills from £4,000 to £6,000, and 50 the average age when bill exceed £6,000.
Buy now, pay later
Bumper, which works with more than 5,000 dealerships and garages across the UK, Spain, Germany, Netherlands and Republic of Ireland, has also revealed it has now helped more than 600,000 drivers defer repair and maintenance costs valued at more than £460m.
CEO and co-founder James Jackson said:
“When it comes to settling workshop bills, budget-conscious millennials have identified the benefits of spreading their outgoings with BNPL, rather than racking up credit card debt. Car owners born in the early 1980s will typically be at a life stage where they have monthly mortgage or rent payments and have a young family, so choosing to spread their motoring costs interest-free over several months makes perfect sense.”
He added: “Our research also shows BNPL isn’t restricted to millennials, as older Gen X owners are likely to use it to cover more expensive bills.”
