Nearly half of car financing applications will be done online in 2022, according to iVendi

Nearly half of auto finance applications made in 2022 will be done online, according to new figures compiled by iVendi.

The company says that across its vehicle retailer user base, it expects to see 45% of customer applications done digitally and remotely, rather than in the showroom. as part of a traditional sales process.

This represents an increase of 35% in 2021, 30% in 2020 and 22% in 2019, which is very indicative of an accelerating trend, said James Tew, CEO.

He added: “The obvious question is why are we seeing this marked increase and the answer is that there are a number of converging factors.

“The first is probably the most obvious. The pandemic has made a relatively large portion of the car-buying public more comfortable with online processes. While the overwhelming majority will combine elements of a showroom and a digital journey, there has likely been a permanent shift towards the latter.

“Secondly, dealers have moved in to meet this need. Many have dramatically improved their online presence over the past couple of years and the car finance journey they offer digitally is simply better and easier to use, which is why more and more consumers are choosing to embrace it. .

“Finally, the technology on offer has continued to improve at a far greater than incremental rate. The online journeys now offered by companies like iVendi are more efficient, easier for dealers to adopt and easier to use for car buyers, and are better integrated into the whole buying process.

Tew said that in addition to that last point, many online auto finance journeys now offered a degree of flexibility that meant customers could “play” with the key variables behind every transaction more efficiently than ever before. that they arrive at the offer they wanted.

He said: “In many ways, online auto finance is more user-friendly, allowing the customer to run through different variations of the numbers in a difficult way when sitting in front of a salesperson in a showroom. Systems have been doing this for many years, but the latest iterations, such as Digital Deals, are better than ever.

“Once they have made their choice, the potential buyer can even check the likelihood of approval online without leaving a footprint on their credit report visible to lenders, before applying, which is a major asset for many.

“For all of these reasons, we expect the shift to online applications to not only continue this year, but to continue to increase significantly for the foreseeable future. Although there will always be a place for applications based on showrooms, we believe an increasing number of car buyers will choose the digital option.

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