Nearly 100% of finance car buyers who tried it liked it better

Just like buying a car, online financing is gaining momentum. Currently, the number of buyers choosing online financing is still below 30%. But what’s interesting is that of those surveyed, 96% of people who financed online preferred it to sitting in a dealership’s finance manager’s room when buying a car. ‘a new car. This predicts the likelihood of changing the car buying experience in the future.

What Determined Buyers’ Views of Online Financing?

Sales and Financing Discussions | LinkedIn Sales Solutions through Unsplash

A survey was conducted by Cox Automotive of car buyers who sought financing online. Remember that 85% of new car purchases and nearly 40% of used cars involve financing. It measured the satisfaction of buyers after taking the first steps online, as well as those who finalized their financing. Basically, the survey broke down financing online versus the traditional method of doing it at the dealership.

Cox surveyed more than 3,000 buyers who bought a new or used car in the past year. Of this group, 2,116 bought a new car and 934 bought a used one. The survey took place at the end of 2021. It’s called the Cox Automotive Car Finance Journey Survey.

How many have chosen online financing?

A car salesman talks to a customer at his desk

A car salesman talks to a customer at his office | Getty

The first thing he found was that most respondents did their homework before they even set foot in a dealership. This time included researching options, obtaining financing and signing all documents. About 70% consulted two or more financial institutions before choosing one.

Most respondents had a relationship with the lender they ultimately chose. As a result, they had positive responses regarding the purchase and financing of their car. But not all the reasons.

On average, it takes 42.9 weeks of earnings to buy a new car. A typical monthly payment is now $691. It’s the most he’s ever been.

What were some of the benefits of online financing?

Ford dealership

A Typical Ford Dealership | Getty

One of the most useful aspects of online financing is that buyers can more accurately estimate their monthly payment options. In total, buyers took longer to sort through financial details online than the time they spent at the dealership.

Of those who got their financing online, most saved nearly 40 minutes at the dealership. And that translated into their overall satisfaction with their dealership experience. Digital car buyers said they had a much better experience.

“Our industry no longer wonders if consumers will ever buy a car online,” said Andy Mayers, associate vice president of operations at Cox Automotive. PR News. “That time has come and research points to a solid growth trajectory. The auto finance industry must be prepared by implementing digital strategies that increase operational efficiency. And enable consumers to find, finance and complete their next vehicle purchase when, where and how they want. »

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