In the 21st century, customers expect choice, especially when they shop online. So, why do some dealers often limit their online motor finance provision to just one source?
The fact is that there are a proportion of buyers who, if not given the option of a range of motor finance solutions, will always look elsewhere.
As online motor finance develops in sophistication, we are learning more and more about what works best and this is certainly an area where dealers can improve. Where we see multi-lender options offered to a buyer, there is a definite propensity to continue with the online process and complete the purchase of the car. This is perhaps something that comes from an almost unconscious consumer assumption based on similar online solutions such as insurance price comparison sites.
The fact is that, in most cases, there is an obvious best solution from among the lenders offered but customers still value choice and even expect it.
Most online motor finance journeys that we create will deliver choices from between 3-6 members of a dealer’s lending panel once a potential car buyer has decided on their preferred finance product, deposit, how much to borrow, and terms. It is all about offering a genuine selection while remaining within sensible bounds. Delivering a choice of hundreds of options, as seen on some insurance comparison sites, is meaningless. It is all about providing a range of sensible solutions.
Also, of course, delivering a choice of motor finance options is very much in line with the ethos of FCA thinking. Giving the customer the tools needed to make an informed decision about financing their vehicle in this way is one of the strengths of online motor finance.