Accessing car finance remains a major hurdle for consumers looking to purchase a vehicle online, according to Caerus Capital.
Ben Maguire, commercial director of Caerus Capital, cited recent research from Auto Trader which found that consumer appetite towards buying a vehicle online is increase. Among those that had purchased a car in the last six months, many would have preferred to complete more processes online.
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According to the research, one of the main hurdles is that consumers find it difficult or impossible to organise finance online, with over a quarter (28%) of respondents finding it difficult to access finance through online channels and 15% finding it extremely difficult to do, while 7% believe it is not possible to organise finance digitally.
The survey revealed that there is appetite among consumers to arrange finance online, with 32% wanting no human support, while 34% want some form of human support. Some 34% want to sort the finance out at a dealership.
Maguire warned that if a dealer website does not feature a range of finance options that are easy to find and understand, the consumer is likely to go elsewhere for the right deal.
“In order to get finance right online, dealers need to provide transparent, consumer-friendly information about the finance products and options available on their websites,” said Maguire. “Quick and easy-to-complete online application forms allow consumers to apply for finance from the comfort of their own surroundings and at any time of the day.
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By GlobalData“It is vitally important that dealers give their customers the ability to apply for finance while they are on the dealer’s site. As soon as customers are forced to shop around to complete their finance, the dealer risks losing the customer to competitors.”
Last month, Caerus Capital published research that found an increasing number of dealers are turning to asset-backed finance to boost their used car sales.
