Did you know that more than six million motorists have used car finance to buy their current car? *
Millions of UK drivers are currently in car finance agreements. We wanted to understand their views on financing cars and whether attitudes towards owning a car outright are changing.
To do this, we surveyed 2,024 UK drivers who’ve taken out a car finance agreement in the last two years.
This is what we found:
Is owning a car outright still important to drivers?
Just a third of the drivers we surveyed (32%) said owning their car outright was important, with less than a quarter (23%) planning to keep their current car once their finance agreement ends.
The flexibility offered by car finance is attractive to many motorists. Almost a third (31%) said they liked that car finance allowed them to change what they’re driving every few years. Meanwhile, 25% would rather drive a newer car on finance than own an older car outright.
When asked if they would have preferred to buy their current car outright, 45% of respondents said they would, but felt that car finance was necessary.
Do people feel pressure to keep up appearances with the car they drive?
More than a quarter of people surveyed (27%) admitted they regularly wonder how other people can afford the cars they drive. So, we wanted to understand whether drivers view their car as a status symbol and if this impacts how motorists feel about owning their car.
We found that one in five (20%) feel under pressure to keep up appearances with what they drive. This perceived pressure was highest in Yorkshire and Scotland, where motorists were 32% more likely to agree with the statement.
Would drivers be happy to share how they financed their cars?
We wanted to know how transparent motorists are when sharing details of their car finance agreement.
According to our research, over a third of drivers (35%) are happy to share how they funded their car purchase. Those who opted for a personal loan are 34% more likely to share than the average respondent.
Over a quarter of people (27%) reported speaking openly with loved ones about how they financed their car, with 33% willing to tell friends and family exactly how much they pay each month.
Despite this, just 22% said they’d get advice from friends and family before taking out car finance.
What’s most important to drivers when choosing a car finance agreement?
According to respondents, car finance was cited as a good way to afford a car that would otherwise be out of budget. Almost two-fifths (37%) shared that they wouldn’t have been able to afford their current car without it.
Monthly payments were the most important car-finance consideration. This was followed by:
- The ability to stay within their monthly budget (10%)
- The option to get a newer car (8%)
- Securing the lowest monthly payment possible (8%)
With motorists only able to select one option, this means that over 40% of those surveyed prioritised immediate financial considerations and access to a newer vehicle over other elements of their car finance agreement.
How well do people understand their own car finance agreement?
Despite everyone we surveyed having taken out a car finance agreement within the last two years, only a third (33%) felt confident they understood car finance and how it works.
With overall knowledge around car finance being limited, we wanted to find out how clear motorists were on the terms of their own agreements.
Just 30% of respondents said they were clear about the terms of their agreement, with less than a quarter of those currently with a PCP (Personal Contract Purchase) clear on whether a balloon payment was due at the end of their finance term.
In fact, only 28% of those surveyed reported understanding the difference between PCP and HP (Hire Purchase).
We found that just 18% knew the APR of their agreement without checking, and only 25% knew the total amount of interest payable as part of their agreement.
Worryingly, we found just one in four drivers (26%) reported having fully read the paperwork associated with their car finance deal before signing.
Reading the documentation supplied as part of a finance agreement helps motorists understand costs and terms before committing and gives an opportunity to ask questions and get greater clarity.
For more information on car finance and how it works, visit: https://www.motorpoint.co.uk/car-finance
Methodology
Motorpoint enlisted SurveyGoo to survey 2,024 UK motorists who have taken out a car finance agreement in the last two years. Data collected in August 2026. All statistics and findings have been rounded to the nearest whole number. Full data available.