For many years, used car dealers have thought that people who are in the market to buy pre-owned cars and looking for financing only look online after they have visited a dealership. This belief was so firm that most dealerships made limited financing options available for those looking online, and these were added only as an afterthought.
Why motor financing is going online
Recently, however, dealers have woken up to the idea that the people looking online for used car finances are not necessarily the same people who are visiting their showrooms. In fact, they are a very different type of buyer, and dealers have probably been missing a trick when it comes to attracting new customers.
What does an online motor finance customer look like?
Customers looking for motor finance online may never have visited a dealer’s showroom. If they have, they may not be using that dealer to find them suitable financing. Instead, many of them are now looking further afield and on the internet to find a finance deal that works for them. This type of customer is internet-savvy and used to searching comparison sites for the right offer.
How are motor finance companies responding?
As motor finance companies get to grips with the requirements of this new, online customer, they are finding that they need to significantly expand their lender offer to remain competitive. This includes the number of lenders they feature on their site and the number of products that are available.
Here, motor finance companies can take inspiration from motor trade insurance companies that offer opportunities for customers to go online; for a motor trade insurance quote visit quotemetoday.co.uk/motor-trade-insurance and other insurance brokers.
In everything they do, they are having to make sure that they remain compliant with government guidelines, including those issued earlier this year by the Financial Conduct Authority.
What do motor finance companies need to do to respond to demand?
In addition to increasing their lender offer, finance companies also need to make IT improvements, investing in the look and feel of their websites and introducing software upgrades for better performance. This means making websites faster and allowing customers apply online, sign e-agreements and make comparisons between multiple offers before they make a final decision.