Almost one in three (32%) consumers who own a car have been put off buying a vehicle due to a lengthy finance process, technology provider Intelligent Environments (IE) has found.
In a survey of 2,000 car owning consumers, IE also found 56% wanted to manage car finance online.
48% of consumers also reported that finance is one of the most difficult aspects of buying a new car.
Despite this, IE found that only 25% of providers have digitised the loans process in a separate survey of 149 senior decision-makers within the retail motor and fleet finance industries.
David Webber, managing director of Intelligent Environments, said: “The current auto finance application and management process involves a lot of paperwork which can be time and energy-intensive.”
Use of the internet in searching for a car is already widespread, with 73% of car buyers being more likely to purchase finance at a dealership after first getting the information online.
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51% wanted an online option for greater visibility of their online finances, while 44% wanted to be able to pay off their car quicker.
“Consumers do everything digitally – researching, browsing and now buying cars and car finance…disruptive new companies that offer cars and finance with a click of a button have the potential to overtake the traditional providers,” Webber warned.
“Digital engagement encourages loyalty and purchases of new vehicles. If traditional car finance providers want to survive the growth of new competitors, they need to listen to consumers, answering their requests for an overhauled application and management system.”