Monthly car payments are preferred by a fifth of drivers

Opinium surveyed 2,000 UK drivers on behalf of InsuretheGap.com and found that 21% prefer to spread the cost of a car over monthly payments and upgrade their car when their finance contract expires.

The proportion who would rather pay monthly rises to 40% among 25-34 year olds. This method of financing cars is most popular in London, Scotland and the North East.  There is newfound willingness to spread the cost of car among some drivers as one in ten respondents (11%) said that they bought their car on finance, but wouldn’t have done so in the past. Nevertheless, 47% still say they never use finance and always buy their car outright.

Paying for a car is a significant outgoing for many; the finance or lease on their car each month costs as much or more than their rent, according to 20% of under 35s. This is only true, however, for 14% of those aged between 35 and 44 and for 5% of those aged 45 and over.

Read more about the research here.