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Half of car finance applicants prefer dealerships finance - survey

Local dealerships are the number one choice for in-market buyers looking to secure finance for a new or used car purchase.

In a survey of 500 motorists, conducted by Stoneacre Financial Services, 50% of potential car finance applicants would initially visit their local dealership; 28% would speak to their bank and 12% would opt for a broker.

Respondents were also asked how long they would be willing to wait for a response after submitting a finance application:

63% per cent of the 500 saying they would expect a result in 24 hours
25% would expect it instantly.

In addition, 63% of respondents said they would make contact with two to three dealers, banks or brokers during the decision making process; 20% would approach just one and 16% would contact as many as four or more.

Stoneacre managing director Shaun Foweather said: “The survey results show that dealerships are the most favorable option for consumers looking to finance a new or used car.”

Referring to it as “fantastic news” for both franchised and independent dealers, Foweather said: “It’s also clear that response times are key to sealing the deal, meaning that those within the industry who fail to succumb to changing consumer demands will be the ones who ultimately get left behind.”

Asked what the key factors are that influence where an in market individual goes on to buy a car from, SFS were also able to reveal that buyers as a whole are on the look out for a good quality used car for a good price and they want it from a reputable and independently reviewed dealer.

Finally, the survey asked a series of questions regarding the ‘payment box’, a device that American dealers have been using for some time now, but is relatively new to the UK.

It helps lenders to mitigate risk by arming them with the ability to remotely disable a car following non payment, the vehicle can then be reactivated via a numerical code supplied by the lender upon payments being brought up-to-date. In more extreme cases, the devices on board GPS can be activated in order to track and recover a vehicle.

Respondents had mixed views on the use of this technology, only 35% thought the payment box was a good idea; 34% thought it was an invasion of privacy and 31% had no specific view on it.

When asked if they would accept a finance agreement that required the fitting of a payment box, 33% of the 500 said yes.



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