The Auto Financing Need for Decisioning Speed Globally, people purchased over 66 million vehicles in 2021, up from 63.8 million the year before 8 . Interest rates for new cars are at some of the lowest they’ve been in the past three years, and prospects are good for those of us lucky enough to have excellent credit scores. A 2021 report shows that new-car loans charge on average 14% less interest than used- car loans 9 . These stats make it clear that there is a real need for speed in auto financing. The supply is adjusting to consumers with good credit and now auto financers need to match that supply with the digital technology
that consumers demand. In simple terms, less time spent processing means more satisfied customers. Accelerating the approval process is about more than just the adage of “time is money;” it’s about creating a loyal customer in a matter of seconds. A study by Wunderman found that nearly 90% of consumers “want to engage with brands that are setting new standards in meeting their expectations. Seventy-four percent said brands can do so by providing a higher level of customer service. In addition, 56% said they feel more loyal to brands who “get me” and show a deep understanding of their priorities and preferences. Additionally, 89% of consumers are loyal to brands that share their values .” – From “Study: Majority of People More Loyal to Brands That Care About Them” in CMO.com/ Adobe Blog 10
Companies that have diverted around these potholes are making waves in the industry – like the example of Carvago, a European online marketplace that enables you to buy and sell used vehicles online. You browse online, make your preferred selection, and Carvago then arranges for a detailed inspection, extended warranty, registration and delivery. The idea of purchasing vehicles online is gaining in popularity – over 60% of Canadians looking to buy a car would use an online purchase option if available 6 , and 42% of consumers would prefer to handle financing online 7 .
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