October 2013
Dealers have turned in a strong performance in a consumer motor finance satisfaction survey carried out by technology firm iVendi.
The survey of 1,000 car buyers asked a series of questions about the online motor finance process with 87% saying it was fair and transparent, 82% that they felt in control and 85% that they were given sufficient information which explained the available finance products
The majority, 88%, said they felt confident in choosing the right finance product for them, 91% that the online vehicle finance process was well-structured and easy to understand, 83% that the finance choices offered represented fair value, and 87% that the way in which personal details would be handled was fully explained.
The survey found most consumers believed they had been treated fairly by the retailer in their online vehicle finance interaction.
Respondents rated this on a scale of 1 to 10 – with 10 being ‘treated very fairly’ and one being ‘treated very badly’. Results showed 91% scored their retailer seven or higher, while ratings of six, five, and four totalled just 9% and no one rated their retailer three, two, or one.
The findings are taken from a new iVendi white paper, “Driving future success: Five key trends in online motor retail,” which is now available for free download.
James Tew, CEO at iVendi, said: “It’s very much possible to view these questions as an indication of how car buyers are reacting to the Consumer Duty regulations, which have been in place since July.
“Generally, the results are very positive, we believe, and show the online compliance journeys that have been created are largely successful.
“Measured using relevant metrics, there appear to be high or very high levels of satisfaction among vehicle buyers. It really does suggest that the new regulations are working plus, of course, we would expect to see these numbers improve further in the future as they bed in and car dealers continually improve their online processes.
“However, it is important to note that there is still room for improvement. For example, the fact that 87% of car buyers felt that the online motor finance process was fair and transparent also suggests that 13% didn’t. Things are arguably going well but there is certainly no room for complacency among retailers.
“Also, our data doesn’t cover what is happening in the showroom, and the picture here may well be very different. One of the key advantages is that it is much easier to show online that consumers are being given the information needed to ensure the process is transparent and fair.”
Consumer Duty was implemented by the Financial Conduct Authority on 31 July 2023, and required finance providers to adhere to a new set of standards designed to make the sales process clearer and fairer for consumers and deliver good outcomes.