LONDON, 21 MARCH 2017 – With an abundance of offers, confusing processes and a seemingly never-ending stream of paperwork, attempting to buy a car is enough to drive even the sanest of us crazy. The vehicle financing process in particular is sending many of us into a tailspin, confusing customers and, in some cases, even putting customers off buying cars.
According to new research by financial technology company ieDigital, half of consumers are left scratching their heads thanks to the complex stages they have to go through to apply for vehicle financing. The research identified that:
- 50% of drivers think vehicle finance agreements are complicated and difficult to understand.
- 29% believe it’s harder to apply for vehicle finance than to buy insurance.
- 26% have avoided applying for auto finance due to lengthy, paper-based processes.
- 32% of consumers would rather take out a personal loan to cover the costs than apply for vehicle finance.
- 34% felt that having access to digital application tools would play a big part in choosing their vehicle finance provider.
These findings suggest that if vehicle finance lenders are to succeed, digital disruption is needed in the industry.
Consumers are used to doing everything online, where everything is as simple as a swipe of a finger – and they expect the vehicle finance application process to be no different. Customer expectations are rising, and the automotive industry needs to do more to meet them.
Digital investment is the first step to success, with over a third (36%) of consumers asking for the introduction of more digital applications and management tools that can help them navigate the labyrinthian processes of vehicle financing.
The benefits of digitising are obvious, with two in five (39%) consumers declaring they would look to upgrade their vehicle if they could get a good financing deal.
“The answer is clear: businesses must digitise,” said ieDigital MD, David Webber. “If half of consumers agree that the vehicle finance application process is too complex, then something must change. And once a change has been made, both the consumer and business benefits are obvious.
“Of course, a commitment to change is easier said than done. Moving to a digital-first approach requires a significant shift in the way an organisation operates, and can be a daunting experience. However, no one is expecting you to go alone. With the right partner alongside, investing in the digital tools and processes that today’s consumers are demanding is a much simpler prospect.
“Ultimately, 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.”