Over half of Brits would rather buy items on finance, rather than outright, study finds | Personal Finance | Finance

The average Brit has bought almost a third of their possessions on tick, according to research. A study of 2,000 UK adults revealed 60 percent would be more inclined to take something out on finance versus buying outright.

Of those, 60 percent reckon it helps them manage their finances, while others can’t afford to buy anything outright (49 percent), and think it gives them more freedom (33 percent).

The assets adults are still paying off include their property (36 percent), cars (20 percent), and mobile phone (15 percent).

Other goods include technology items, white goods, furniture, clothes, and home renovations.

But 14 percent have missed payments when trying to pay something off on finance – with 68 percent claiming this has put them off taking on other items in that way.

And a quarter have financially committed to something, but later regretted their decision.

A spokesman for Renault, which commissioned the research to launch its subscription package to simplify and add flexibility to owning a vehicle, said: “It’s important that people can buy products in the most flexible way that will fit with today’s lifestyles and budgets.

“People are buying cars, but in a different way than before, and cash is not necessarily king in this day and age.

“TV has gone from satellite to streaming with subscriptions, you can pay for your online clothes orders in three-instalments – and so naturally, people are moving with the times and wanting to subscribe to things more as it’s convenient.”

The study also found 69 percent of adults believe financing or subscribing to things, rather than buying them outright, has become more acceptable now compared to 10 years ago.

More than three-quarters (77 percent) are “comfortable” with the amount of money they spend on subscription services each month.

And 57 percent believe there is no longer the need to own things outright nowadays, and that they have more access to items as a result.

On top of this, short-term payments were also the preferred finance option for many (43 percent), compared to just 17 percent of those polled who would opt for the long-term option.

The spokesman for Renault Subscription, which also cuts the “car admin” such as tax, insurance, and servicing into one single payment, added: “Many drivers have not only expressed an interest in switching to an electric or hybrid car, but also reducing the stress and admin that car ownership brings, and subscriptions can be a great solution for those people.

“Traditional ownership methods will always have a place but, in line with how we now pay for many goods and services, there’s a very significant increase in those who would consider a new car on a subscription basis, as it is easy to do and gives people the freedom to stop at any time.

“Especially if they’re busy and see car admin such as tax, insurance, and servicing as a hassle, which is all taken care of under the same subscription cost.”