One in ten Brits spend more on beauty treatments than on essentials like a car

Over one third of Brits (34%) spend more on eating out per month* than the cost of their family car, new data has revealed. 

Our study showed that the average monthly car payment is surprisingly low at £235 per month, which is, on average, just 11% of people's monthly income, with the lowest monthly payment coming in at £116 depending on the car chosen. 

In comparison, consumers can bag themselves a car for less than Brits spend on beauty and wellness a month*, with one in ten Brits (11%) spending more on beauty treatments and make up than the cost of the cheapest car on finance. This is particularly true for Gen Z, with almost one quarter (25%) spending more on beauty per month* than a car payment. 

What's more, over one third (38%) spend more on shopping* than on the cheapest car payment per month. 

Men in particular spend more eating out per month*, with over one third (36%) spending more than the average car payment. This is the same for shopping, with almost half of men (46%) spending more* than a car payment per month.

The cheapest cars to finance based on average monthly payments:

Our data also found then when purchasing a car either outright or on finance, the most important factor for two thirds of Brits (62%) is reliability, closely followed by comfort (45%) and aesthetic (32%).

Our motoring expert here at First Response Finance, Jonathan, comments:

"These findings show that of the 88% Brits who would purchase a car on finance, they are potentially unaware of the amount they are spending on luxuries in comparison to the cost of an essential like a car. 

"This affordability index aims to highlight that a car is within a lot of Brits' means, especially as almost one third (30%) believe that purchasing a car on finance helps to make the monthly payments more manageable.

"It can be a means for those who may not have access to a lump sum for a deposit, which is true for a quarter of Gen Zs (25%) and Millennials (25%), to be able to purchase a car.

"There are ways to reduce your monthly car finance bill even further, too - you could do this by boosting your credit score to get a more competitive rate, choosing a cheaper make and model as per the list of cheapest models, to paying a bigger lump sum deposit or extending the length of your repayment plan. 

"As always, it is important to note though that finance applications are assessed based on a range of individual circumstances, not just location or income."

For more information, check out the full car finance index here! 👈