New research has revealed that 4.7 million British motorists are paying for their car on some sort of finance package.
According to the study for Kwik Fit, the UK’s leading automotive servicing and repair company, the average monthly payment across the country is £226.12.
Finance providers often highlight that one of the benefits of buying a car on finance is that motorists can drive a more expensive model than they might otherwise be able to afford.
Kwik Fit’s research reveals exactly how big an upgrade motorists make when buying with finance.
Those drivers who bought their current car outright paid an average price of £10,511, while those using finance ‘bought’ a car costing 47% more, with an average price of £15,438.
London drivers pay the most each month with an average payment of £269.01. This is 43% more than motorists in Scotland, who have the lowest payments at £188.36 per month.
“This study reveals the huge sums of money which the country’s drivers are spending each month on car finance payments, either through PCPs, leases or other types of borrowing,” said Roger Griggs of Kwik Fit.
“Whichever route drivers take to finance their car, or if they pay for it outright, it’s vital that they focus on maintaining as much of its value as possible for when they come to sell it.
“Keeping it properly serviced is essential, so drivers need to ensure they are budgeting for those costs and not skimping on maintenance.”
Monthly car finance payments by GB region
|Region||Number of motorists paying monthly finance payments||Average monthly payment||Total cost per month|
|Yorks & Humber||506,000||£218.23||£110,424,380|
Source: Kwik Fit 2018