Millennials drive surge in buy now, pay later for car repairs

Millennials are the most frequent users of Buy Now, Pay Later (BNPL) services to manage car repair, servicing, and MoT expenses, according to fintech payment specialist Bumper.

Bumper's research reveals that the average age of customers using BNPL for car-related costs is 43 – with Millennials typically defined as those born between 1981 and 1996. These users prefer spreading their payments over time instead of paying upfront or using credit cards.

This trend holds steady across franchised dealers, though the average age dips to 38 for customers at independent workshops.

Interestingly, older Generation X car owners (born 1965-1980) are more likely to use BNPL for higher-value repairs. The study found the average age of BNPL users rises to 47 for bills between £2,000-£4,000, 49 for bills between £4,000-£6,000, and over 50 for expenses exceeding £6,000.

The UK and Ireland have the youngest average BNPL users in Europe (43 years), followed by Spain (45), Germany (46), and the Netherlands (47).

"Budget-conscious Millennials are increasingly opting to use BNPL to manage workshop bills, avoiding the burden of credit card debt," said James Jackson, CEO and co-founder of Bumper.

"Many Millennials, especially those born in the early 1980s, are at a life stage where they juggle mortgage or rent payments and family expenses. Spreading their motoring costs interest-free over several months is a practical choice."

Jackson also highlighted that BNPL usage isn't limited to Millennials, as older Gen X customers are likely to use it for more substantial expenses.

Bumper projects it will facilitate over £460 million in car repairs through BNPL services this year.