Online eligibility tools that enable consumers to check the possibility of receiving an approval for their application seeking motor finance are set to become more important due to the increasing living cost crisis in the UK, stated iVendi.
Set up in 2009 with its base in Colwyn Bay UK, iVendi provides connected motor retail technology. Its digital products aid customers to purchase vehicles and dealers to sell them online and in the showroom.
Its technology interacts with approximately five million consumers monthly, and thousands of motor retailers, manufacturers and finance providers.
iVendi CCO Darren Sinclair said with personal finances to be squeezed further over the months to come, car buyers would show greater interest in motor finance options available to them.
“The cost-of-living crisis and the high likelihood of recession mean that motor finance providers will almost certainly tighten the criteria on which they base their lending in order to minimise the risks they face.”
Inevitably, it would imply fewer people would meet the eligibility criteria of their preferred lender and therefore, may turn to their second, third or fourth choice, or even decide not to purchase at all.
“The advantage of online eligibility checkers is that they allow potential buyers to look at a dealer’s lending panel for a variety of motor finance products. They can see instantly and at a glance their likelihood of approval using a traffic light system – all without leaving a footprint on their credit file. It’s a much softer and friendlier process than making a formal application,” Sinclair added.
During a tough period for personal finances, something that is likely to get worse, online visibility for eligibility may be essential to consumers who are likely to be aware of their present circumstances.
Several dealers with which iVendi worked included the company’s eligibility checking tool in their regular customer journey.
According to Sinclair, eligibility checking works well when it forms part of an online buying process and is provided as a ‘no-cost’ option to customers who like to purchase a car and want to have a complete understanding of the motor finance options.
“At a time when people are feeling less confident about their finances, there is a strong likelihood they will find a high degree of comfort in having greater amounts of quality information available to them online. Eligibility checker technology makes this possible without them needing to speak to a person or face the embarrassment of potential finance application rejections,” Sinclair added.