The Salford-based driving school PassMeFast has used short-term lending to enable its mission to make driving lessons accessible for everyone.
Since introducing the flexible Buy Now Pay Later (BNPL) finance option, Payl8r, three years ago, the school has seen over 3,000 students pass their driving tests.
On average, it costs £2,500 to learn how to drive. This is a 215 per cent rise in the past 30 years, amounting to over 7 per cent of the average UK salary.
Research has found that with costs rising, and access to lessons becoming increasingly inaccessible to lower-income individuals, GenZ are less likely to learn to drive than Millennials. This is despite the Department of Transport stating that having access to a personal car makes it 3.8 times more likely that someone is employed rather than unemployed.
Since PassMeFast introduced Payl8r as a spread-the-cost payment option at checkout, the driving school has seen finance orders ‘skyrocket’ by 1011 per cent.
PassMeFast provides intensive, semi-intensive, and crash-course driving lessons across all of Great Britain and is headquartered in MediaCity.
Samantha Fogerty, chief operating officer of Payl8r: “Regulated finance options are crucial to enabling people access to key life skills. Working with PassMeFast has enabled thousands of students to pass their driving tests who may not have been able to afford lessons without a BNPL option.
“Regulated BNPL options can add major value to people’s lives and help to limit financial exclusions.”
Payl8r is one of few short-term lenders operating in the subprime market, facilitated through its use of Open Banking. By providing real-time insight into prospective borrowers, Open Banking gives full scope to lenders of customers’ financial situation, looking beyond a thin credit file.
Customers with lower credit scores have a higher likelihood of accessing short-term loans, limiting their chances of being refused by a lender and seeking high-risk unregulated finance options.
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