Finance cost Brits £1bn per month

Over 4.7 million British motorists are paying for their car on some sort of finance package, according to new research, which totals to £1,072,713,000 a month or £12.9bn 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 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 £200m 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.

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.