New research on the UK car finance market has found that payments have now hit over £1 billion a month according to Kwik Fit.

Kwik Fit has found, the average payment is now £226.12 per month. The North West was the region with the most drivers paying finance, 867,000, while Wales had the smallest finance customer base at 127,000.

Scotland was the region with lowest average monthly payment at £188.36, while the South East recorded the highest average at £271.63. London was close behind with average payments of £269.01, despite having a small customer base for its population, at 360,000 motorists.

The survey also revealed a price gap between vehicles paid for in cash and those sold on finance. Customers paying upfront spent £10,511 on average, while total cost for those opting for finance averaged £15,438.

Roger Griggs, Communications Director at Kwik Fit, said “This study reveals the huge sums of money which the country’s drivers are spending each month on car finance payments, either through PCPs, leases or other types of borrowing. Whichever route drivers take to finance their car, or if they pay for it outright, it’s vital that they focus on maintaining as much of its value as possible for when they come to sell it. Keeping it properly serviced is essential, so drivers need to ensure they are budgeting for those costs and not skimping on maintenance.”

Region Number of motorists paying monthly finance payments Average monthly payment Total cost per month
North West 867,000 £226.94 £196,756,980
South East 549,000 £271.63 £149,124,870
Scotland 616,000 £188.36 £116,029,760
Yorkshire & the Humber 506,000 £218.23 £110,424,380
West Midlands 484,000 £223.72 £108,280,480
London 360,000 £269.01 £96,843,600
Eastern 335,000 £229.61 £76,919,350
South West 298,000 £253.69 £75,599,620
East Midlands 389,000 £192.19 £74,761,910
North East 213,000 £202.71 £43,177,230
Wales 127,000 £215.08 £27,315,160
GB 4,744,000