New research has revealed a lot about car finance in Britain. Read on to find out more.
Research carried out by Kwik Fit has found that more than 4.7 million drivers in Britain are using finance options to pay for their car. The average monthly payment is £226.12, which means the total monthly finance bill in Britain is £1,072,713,000 and the annual total £12.9bn.
People who bought their car on finance went for a model that cost 47% more on average. Those who paid outright paid £10,511 on average, whereas drivers using finance options went for a car with an average price of £15,438.
The following table highlights the average monthly car finance payments for each British 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 |
The data shows that there are more people in the northwest of England that own cars on finance. Drivers in London have the highest monthly payment on average, whilst those in Scotland pay the least each month.
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.”
In case you weren’t aware, Admiral now offers car finance packages. Read more about our car finance options here.