- 4.7 million drivers currently facing monthly car payments
- North West is country’s car finance hot spot
- Scotland has lowest average monthly payment at £188.36
- London drivers pay the most for their cars, with average value of £13,800
Over 4.7 million British motorists are paying for their car on some sort of finance package, according to new research revealed today, with the average monthly payment across the country being £226.12. When taken together, the total monthly bill is £1,072,713,000, or £12.9 billion per year.
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. The new study for Kwik Fit, the UK’s leading automotive servicing and repair company, 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.
The North West of England is the region with the biggest overall monthly bill, with 867,000 motorists paying a total of almost £200 million each month. Individually, 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.
Table 1: Monthly car finance payments by GB region
|
Region |
Number of motorists paying monthly finance payments |
Average monthly payment |
Total cost per month |
|
North West |
867,000 |
£226.94 |
£196,756,980 |
|
South East |
549,000 |
£271.63 |
£149,124,870 |
|
Scotland |
616,000 |
£188.36 |
£116,029,760 |
|
Yorks & Humber |
506,000 |
£218.23 |
£110,424,380 |
|
West Midlands |
484,000 |
£223.72 |
£108,280,480 |
|
London |
360,000 |
£269.01 |
£96,843,600 |
|
Eastern |
335,000 |
£229.61 |
£76,919,350 |
|
South West |
298,000 |
£253.69 |
£75,599,620 |
|
East Midlands |
389,000 |
£192.19 |
£74,761,910 |
|
North East |
213,000 |
£202.71 |
£43,177,230 |
|
Wales |
127,000 |
£215.08 |
£27,315,160 |
|
GB |
4,744,000 |
£226.12 |
£1,072,713,280 |
Source: Kwik Fit 2018
Kwik Fit’s research has also revealed that London drivers choose more expensive cars than the rest of the country. On average, motorists in the capital have paid over £1,000 more than drivers from Yorkshire, the region with the second highest purchase price.
While the average purchase price paid by motorists across the country is £11,170 (including both new and used cars), drivers in London have paid 24% more than this at £13,814. This is a whopping 44% more than South West, the region with the lowest average purchase price at £9,624.
Table 2: Average purchase price of car by region
Source: Kwik Fit 2018
Roger Griggs, communications director at Kwik Fit, said: “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. 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.”
Drivers can find more information on maintaining and servicing their vehicle and book an appointment online at https://www.kwik-fit.com/servicing
For the latest news and updates from Kwik Fit, customers can also follow the company on Twitter at @kwik_fit.