Half of drivers find vehicle finance agreements to be complicated and difficult to understand, according to research from Intelligent Environments.
The financial technology provider found that a further 26% were put off applying for motor finance due to the length and paper-based nature of the process.
Almost a third of respondents, 32%, would sooner take out a personal loan to cover the cost of a car, and 29% believed applying for vehicle finance was harder than buying insurance.
The research found that 34% thought access to digital application tools would play a large part in influencing their choice of vehicle finance provider, and 36% seeking the introduction of more digital applications and management tools.
Intelligence Environments said that 39% of respondents said they would look to upgrade their vehicle if they could get a good financing deal.
David Webber, managing director at Intelligent Environments, called on vehicle finance providers to digitise or risk going out of business.
Webber said: “The answer is clear: businesses must digitise. As more and more vehicle financing companies begin to embrace change and digitise their processes, those who fail to invest will quickly find themselves being overtaken by more agile rivals.
“Right now, businesses have a choice: start their engine early and accelerate ahead of the competition, or wait and risk being left behind.”
