Millennials are the most frequent users of buy now, pay later (BNPL) services to cover car repair, servicing, and MoT bills, according to research by Bumper, an automotive fintech payment specialist.
The Millennial generation, typically defined as those born between 1981 and 1996, are opting to spread their motoring costs rather than paying upfront or using credit cards.
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Bumper’s research revealed that the average age of BNPL customers is 43, a figure consistent across franchised dealers. However, the average age dips to 38 for customers using independent workshops.
Generation X, born between 1965 and 1980, are more likely to use BNPL for higher-value bills. The research found that the average age of BNPL users rises to 47 for bills between £2,000 and £4,000, 49 for bills ranging from £4,000 to £6,000, and over 50 for bills exceeding £6,000.
In terms of geography, the UK and Ireland have the youngest average BNPL users in Europe at 43 years, followed by Spain (45), Germany (46), and the Netherlands (47).
“Budget-conscious Millennials are increasingly turning to BNPL to manage workshop bills and avoid accumulating credit card debt,” said James Jackson, CEO and co-founder of Bumper. “For those born in the early 1980s, who are often balancing mortgage or rent payments and raising a young family, spreading the cost of car repairs interest-free is a practical solution.”
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By GlobalDataJackson also noted that BNPL services are not exclusively used by Millennials, with older Gen X customers frequently opting for deferred payments for more expensive repairs.
Bumper forecasts that it will facilitate over £460 million in car repair funding this year.
