UK car buyers ‘shifting towards online financing’

Time 9:39 am, March 21, 2019

CAR buyers in the UK are finding more of their financing online.

That’s according to the second annual survey on auto financing carried out by analytics software firm Fico, which showed that:

 21 per cent of UK buyers got their financing online versus 15 per cent last year

 Of the nine countries in Europe and the Americas surveyed, only Chile saw more respondents getting loans online (24 per cent)

 37 per cent of UK car buyers said they would prefer to apply online the next time they buy a car

The research – which saw 2,000 adult consumers surveyed across the UK, US, Canada, Mexico, Chile, Australia, New Zealand, Germany and Spain – also showed that UK car buyers got their financing faster than any other country but Germany, which tied with the UK.

Fifty-five per cent of respondents got their financing in less than 30 minutes. However, this was less than last year, when 63 per cent of buyers waited less than 30 minutes.

UK car buyers still found the process easier than people in other countries though, with 82 per cent finding it easy, just above Germany (81 per cent) and Mexico (80 per cent) – and well above the USA at 68 per cent.

Steve Hadaway, general manager for Europe, the Middle East and Africa at Fico, said: ‘Consumers are taking greater control of the auto financing process. They are moving online in their search for a better deal. Those lenders that can instantly offer a superior financial package based on analysis of the applicant’s data stand to gain.’

The respondents were aged between 18 and 64 who got a loan or lease on a new or used vehicle within the past three years.

MORE: UK car buyers ready for digital financing but adoption is slow, says report

MORE: FCA considers commission charges after uncovering ‘serious concerns’ about lender rewards

MORE: Consumer car finance market up by one per cent in January

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