Almost three quarters (74%) of consumers intend to fund their next car purchase using dealer finance, a survey conducted by independent lender MotoNovo finance has found.

A further 18% said they were ‘not sure’ or would see their options at the time. Just 8% said they intended to pay for their next car in cash, and none selected ‘loan.’

When asked why they would choose dealer finance, half (50%) said it was because of competitive and transparent pricing. Almost a quarter (24%) said it was because the dealer offered it.

Of the remaining options, 10% said the selected it due to availability, 8% said it was due to convenience, while just 2% said it was because they were offered a better deal than elsewhere. The remainder based their choice off previous experience or didn’t recall.
MotoNovo also noted that customers often only discovered how competitive dealer finance could be once in the show room, and therefore advised promoting rates online.

Karl Werner, head of sales and marketing at MotoNovo said: "dealers should be encouraged by these findings because they clearly demonstrate that customers who opt for dealer finance clearly love the experience. The opportunity that these findings reveal is twofold:

– Finance can help retention
– Dealers can make in-roads to increase finance penetration by increasing their promotion of finance in a transparent fashion focusing up competitive pricing. This message can be supported by information about availability and convenience.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"We know that many dealers are concerned about the implication of FCA regulation. Our message is that this change could in fact be a catalyst for growth."