Millennials spread car repair costs with buy now pay later

Millennials (people born between 1981-1996) are the most likely to use buy now, pay later (BNPL) services to cover repairs, servicing and MoT bills, according to Bumper.

43 is the average age of customers using BNPL. These owners choosing to spread their costs rather than pay upfront or use credit cards. This overall average was consistent across franchised dealers but fell to 38 for independent workshops.

James Jackson, CEO and co-founder of Bumper, 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.

“Our research also shows BNPL is not restricted to Millennials as older Gen X owners are likely to use it to cover more expensive bills.”

Older Generation X owners (1965-1980) are likely to use BNPL for expensive bills. 47 was the average age of buyers using deferred payments for bills costing £2,000-£4,000; 49 for £4,000-£6,000; and over-50s for bills in excess of £6,000.

The UK and Ireland have the youngest average users in Europe (43), followed by Spain (45), Germany (46) and the Netherlands (47).