Millennials drive surge in purchase now, pay later for automotive repairs


Millennials are probably the most frequent customers of Purchase Now, Pay Later (BNPL) companies to handle automotive restore, servicing, and MoT bills, in accordance with fintech fee specialist Bumper.
Bumper’s analysis reveals that the typical age of shoppers utilizing BNPL for car-related prices is 43 – with Millennials usually outlined as these born between 1981 and 1996. These customers desire spreading their funds over time as a substitute of paying upfront or utilizing bank cards.
This pattern holds regular throughout franchised sellers, although the typical age dips to 38 for purchasers at impartial workshops.
Curiously, older Era X automotive house owners (born 1965-1980) are extra seemingly to make use of BNPL for higher-value repairs. The examine discovered the typical age of BNPL customers rises to 47 for payments between £2,000-£4,000, 49 for payments between £4,000-£6,000, and over 50 for bills exceeding £6,000.
The UK and Eire have the youngest common BNPL customers in Europe (43 years), adopted by Spain (45), Germany (46), and the Netherlands (47).
“Funds-conscious Millennials are more and more opting to make use of BNPL to handle workshop payments, avoiding the burden of bank card debt,” stated James Jackson, CEO and co-founder of Bumper.
“Many Millennials, particularly these born within the early Eighties, are at a life stage the place they juggle mortgage or lease funds and household bills. Spreading their motoring prices interest-free over a number of months is a sensible selection.”
Jackson additionally highlighted that BNPL utilization is not restricted to Millennials, as older Gen X clients are seemingly to make use of it for extra substantial bills.
Bumper initiatives it would facilitate over £460 million in automotive repairs by BNPL companies this yr.