Over Half of Brits Expected to Finance Next Car Purchase

New research from private number plate provider Regtransfers reveals over half of British drivers (55%) are likely to purchase their next car on finance, reflecting the nation’s growing reliance on credit in the wake of ongoing economic uncertainty.

As households contend with tightened budgets amid rising living costs, financing options such as loans and credit were found to be an attractive purchasing option for cars, particularly with those on lower income levels. Younger generations are especially likely to embrace financing as a means to combat their lower access to savings, with a substantial 68% of those aged 25-34 indicating that they’re either “somewhat likely” (50%) or “very likely” (18%) to finance their next car purchase.

“Financing has become a core part of consumer purchasing across sectors, with options like Klarna, Clearpay, and PayPal’s ‘Pay in 3’ making it more accessible than ever,” says Regtransfers CEO Mark Trimbee. “With economic pressures mounting, many younger and middle-aged consumers are turning to financing to balance quality and affordability in car ownership. However, it’s important to take financial stability into account before taking on larger financed purchases like cars, as these commitments can impact one’s long-term financial health if not managed carefully.”

The data also uncovers regional contrasts that reflect local economic conditions and cultural attitudes toward financing. Londoners are among the most likely to consider financing, with 72% expressing a favourable view (22% “very likely” and 50% “somewhat likely”). This is notably higher than the North East, where only 46% said they would consider financing.

Regtransfers’ findings reveal a general shift in how Brits are approaching large purchases like cars. The popularity of financing arrangements, especially among younger generations and urban residents, aligns with the broader trend of increased debt reliance as UK households manage stretched budgets and shifting financial priorities. For the youngest drivers, financing offers a way to balance quality with affordability, while older generations continue to adopt a more conservative approach.

As the UK adjusts to the recent Autumn Budget, which has placed further pressure on households with tax increases and spending cuts, the data points to an ongoing trend toward financial products that spread costs over time.