Car buyers are embracing online self-service car finance during the COVID-19 coronavirus lockdown period, according to Evolution funding.
The motor finance broker reported a 290% rise in customers completing end-to-end, online self-serve finance sales during April.
It said that the transactions – where consumers propose themselves online and complete a distance e-Sign journey from home – demonstrate that car buyers are “willing to take the leap towards self-service”.
Chris Coverdale, Evolution group sales director, said: “This rise in self-serve finance proves the importance of enabling customers to transact online. Many of the car sales platforms are reporting a surge in online activity.
“Our data shows us that buyers are willing to take the leap towards self-service. Indeed, we expect this to become the norm as social distancing measures continue and consumer behaviour adapts.”
In the latest edition of AM magazine – which can be accessed by clicking here or on the teaser image at the bottom of this article – suppliers sought to answer the question of whether COVID-19 would speed-up digital transformation of automotive retail?
With many now reporting a ramp-up in the number of dealers and consumers embracing online retail in far greater numbers, the direction of travel could now be set.
- AM is urging retailers to share their experience of trading during the COVID-19 coronavirus outbreak via its two-minute, quick-fire ‘COVID-19 car retail recovery survey’. Click here to take part.
Evolution said that its self-service process is made possible via quote and propose software hosted on the websites of its dealer partners.
Their digital signing solution, Sign Anywhere, lets the customer complete the transaction without ever visiting the dealership.
Prior to the COVID-19 crisis, 10.75% of all deals were completed in this way.
During April, that percentage has risen to 31.2%.
Coverdale said: “Those dealers that are already digitally-enabled are continuing to transact, albeit at much lower volumes.
“The tools that dealers can add to their websites are quick and simple to implement – from eligibility checkers through to finance calculators that invite online applications and deliver instant decisions.
“We believe that now is the time for dealers to get digital-ready for when the upturn happens.”
Yesterday AM reported on another trend delivering change to the automotive finance sector during COVID-19 lockdown.
Luxury car retailer Romans International announced that the roll-out of its Elev8 Finance broker arm to the wider market had been prompted by an influx of customers looking to refinance collectible cars in order to release cash, extend agreements or take payment holidays during the current COVID-19 coronavirus crisis.