Millennials are the most likely car owners to use buy now, pay later (BNPL) services to cover their car repair, servicing and MoT bills.

The Millennial demographic typically covers people born between 1981-1996.

Research by Bumper, the automotive fintech payment specialist, has identified 43 as the average age of customers using BNPL, with these owners choosing to spread their costs rather than pay upfront or use credit cards.

This overall average was consistent across franchised dealers but dipped to 38 for independent workshops.

However, older Generation X owners (born between 1965-1980) are likely to use BNPL for more expensive bills. The study found 47 was the average age of buyers using deferred payments for bills costing £2,000-£4,000; 49 for £4,000-£6,000; and over-50s for bills in excess of £6,000.

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

“When it comes to settling workshop bills, budget-conscious millennials have identified the benefits of spreading their outgoings with BNPL, rather than racking up credit card debt,” said James Jackson, CEO and co-founder of Bumper. 

“Car owners born in the early 1980s will typically be at a life stage where they have monthly mortgage or rent payments and have a young family; so choosing to spread their motoring costs, interest-free over several months, makes perfect sense. 

“Our research also shows BNPL is not restricted to Millennials as older Gen X owners are likely to use it to cover more expensive bills,” he said. 

This year Bumper forecasts it will help car owners to fund over £460m worth of car repairs.