Drivers favour monthly bills
- 30 June 2022
- Posted by: Alan Feldberg
- Category: News
New research has found that almost one in three (30%) drivers prefer to pay for their car on a monthly basis.
According to a new Opinium survey of 2,000 UK drivers, commissioned by InsuretheGap.com, younger age groups are the most likely to pay monthly, with 53% of 18–34 year-olds favouring monthly payments compared to 39% of 35–54 year olds and 17% of those over 55.
For a third of drivers (36%), car payments are their second biggest monthly outlay after mortgage or rent costs – the figure rises to 66% for those who bought on finance – while 16% say their monthly car costs are as much or more than their rent or mortgage.
Ben Wooltorton, InsuretheGap.com said: “Paying monthly for a car is a convenient way to budget for a lot of drivers and also allows them to buy a more expensive car than they might otherwise be able to afford, if they were paying cash. However, drivers should be aware that if that car is written off or stolen the insurance will only pay out what the car is worth at the time, not the amount paid for it. Drivers do not want to be left with a finance deal to pay off, and no car. A GAP insurance policy from a specialist insurance provider, like InsuretheGap, can protect drivers from this.”