Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders
The survey examines how consumers view automotive financing options for new and used vehicle purchases, as well as how vehicle finance companies are currently meeting customer expectations. While dealership financing is currently holding steady, online loans are gaining traction which is being driven by the changing consumer expectations. Specifically, consumers cited convenience, comparison shopping across lenders, and speed as the top factors for online financing. Significant Findings include:
Shown below is the full press release for reference.
FICO Survey: Auto Dealership Financing Holds Strong Among Consumers while Online Loans Gain Traction. Highlights of Findings in FICO’s 2019 U.S. Consumer Survey of Vehicle Finance Perceptions:
Silicon Valley analytics software firm, FICO, announced the findings of its second annual global survey on consumers’ perceptions of their vehicle financing experience. The research looked at how consumers view the financing of their new and used vehicle purchases, as well as how vehicle finance companies are currently meeting customer expectations. The survey finds that there is a disconnect between consumers’ finance preferences for current loans and consumers’ finance preferences for future loans—with the largest gap centered on digital (nearly a 15-point difference). More than a quarter of consumers (28%) listed online financing as their first choice for their next loan, an increase from the number of current online borrowers (13%). Conversely, 63% of consumers applied for their current automotive loans from the dealership, but only 40% said dealership financing would be their first choice for their next automotive loan. While dealership financing continues to be the preferred loan option, online loans are gaining traction, which is being driven by the changing consumer expectations. Consumers cited the following top factors for financing options:
“With the accelerating adoption of digital, our findings suggest that the US, as well as the global market, may be reaching a tipping point where the shift to digital happens rapidly given consumer expectations and the availability of new technology,” said Ken Kertz, senior director and practice leader, Auto & Motorized at FICO. “Consumers want simplicity and transparency whether financing online or at the dealer, and need to trust the process. Consumers will have a stronger say in how, where and who they do business with, and will greatly influence the emerging business models available today.”
Currently, the majority of the consumers (78%) are initiating automotive loan discussions. 95% of consumers would consider only between one to three lenders. They care most about their monthly payment (92%), length of loan term (90%), and, interest rate (87%). Other Significant Findings:
FICO’s independent research surveyed 2,000 adult consumers across nine countries, including the US, Canada, Mexico, Chile, Australia, New Zealand, Germany, Spain, and the UK. The respondents were between the ages of 18-64 who acquired a loan or lease on a new or used vehicle within the last 3 years.
More information on the survey results can be found at: https://www.fico.com/en/latest-thinking/ebook/2019-global-consumer-... FICOFICO (NYSE: FICO) powers decisions that help consumers and auto finance lenders come together. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational and customer facing decisions.
FICO holds more than 190 US and foreign patents on technologies that increase profitability, customer satisfaction and growth in many industries including lending. Using FICO credit risk lifecycle solutions and advanced analytics, auto lenders can accelerate their marketing, acquisition, customer management, financial crime prevention and analytics strategies to add value to their bottom line.
Learn more at http://www.fico.com ;
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
Media Contact: Greg JawskiPorter Novelli for FICO at 212-601-8248
Greg.email@example.com ### ALEXA OHMPORTER NOVELLI | www.porternovelli.com
M 708 717 6404 | O 312 552 6327 Alexa.Ohm@porternovelli.com