Car finance: A growing need for debt advice and support
The cost-of-living is having a significant impact on the financial wellbeing of car finance customers. Since 2020 we have seen a 13% increase in the proportion of our customers who have a car finance debt.
Our data shows that car finance customers have 59% more unsecured debt than our other debt advice clients. Car finance customers could therefore be at risk of financial hardship if their circumstances change. There are many triggers that can push customers into problem debt, such as losing their job, going through a relationship breakdown, or simply the large increases in their regular bills we’ve seen in recent years.
Our data also shows that most customers will have already missed payments to other debts before they miss their car finance payment. Providing support to customers who may be struggling to keep up with payments on their car finance, leases and loans is crucial to helping them get a good financial outcome.
At StepChange, we support thousands of people every year who are struggling with money. This includes an increasing number of clients with car finance loans and leases. We work with the UK’s leading lenders to provide convenient and seamless referrals into our award-winning, free, and impartial debt advice.
Find out more about our latest insight, reports and events for the car finance sector, and discover how we can work together to support your customers.