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Dealers can help car owners save over £100m in charges this year if they opt to pay for vehicle repairs using zero-interest monthly payments, according to finance provider Bumper.
UK Finance, the trade body for the banking and financial services sector, shows 49.8% of credit card balances incurred interest in March, based on 346.3 million transactions worth £19.9bn.
Internal data from Bumper shows customers using its PayLater funding service have saved £213m since the facility was offered by dealers in 2014.
James Jackson, CEO and co-founder of Bumper, said: “Even though average credit card APRs are riding at historically high levels, some car owners faced with the ongoing challenges of the cost of living crisis are racking up debt unnecessarily when it comes to paying for vehicle repairs, services and maintenance,
“However, as we sign up new dealer groups and integrate with more DMS platforms, we are seeing an exponential growth in demand for our PayLater service from owners choosing to spread their costs over monthly instalments that do not attract interest.”