By Tony Willard
More than 90% of customers fail to use dealers’ used car finance offers because they are unaware of them or do not understand or trust the information, according to new research.
Karl Werner, head of sales and marketing at MotoNovo Finance, said online finance processes should be developed to enable customers to complete loan proposals online, as dealer staff do in showrooms. The research, commissioned by MotoNovo Finance, suggests more than 70% prefer that.
“First, dealers need to ensure their finance proposition is online,” he said. “But, as well as providing rate information, it is important digital channels inform and educate prospective customers.”
Werner said used car buyers often made buying decisions on limited information. “This is driven by rate and the perception that ‘paying cash gets a better deal’. They may never discover the potential of a used car PCP.
“This is because information about the convenience and high acceptance rates typically associated with dealer finance is not online, or not clearly accessible.”
Werner said new car finance was delivering record levels of penetration, but used car finance lagged behind, with only a small increase over the past 18 months.
“The opportunity to increase used car finance sales does exist – to realise it, dealers need to widen their approach to promoting finance,” he added.