One in five drivers prefer to budget and pay for their car on a monthly basis, says InsuretheGap.
This is better than worrying about its total cost knowing they will upgrade once their finance contact runs out, according to the Opinium survey of 2000 UK drivers commissioned by InsuretheGap.com.
The provider of Guaranteed Asset Protection insurance is part of Halo Insurance Services and 25 to 34 year olds were the most likely (40%) to finance their cars this way, with Scotland, the North East and London coming out as the regions where drivers were the most likely to do this.
Over 55s were the least likely to do this with only 18% of 55-64 year olds saying they finance their cars this way.
Almost half of UK drivers (47%) shunned finance options saying they always buy their car outright. However, 11% claim that they bought their most recent car on finance but wouldn’t have done so in the past.
The proportion of income spent on cars peaked for the under 35s with a fifth (20%) saying the finance or lease costs on their car each month were as much or more than their rent, dropping to 14% for 35 – 44 years old and 5% for over 45s.