F&I Management & Training

More than half of UK consumers (55%) do not believe that the car buying process has changed significantly in the past three years, despite the increasing use of the internet, a survey by Blackhorse and YouGov has revealed.

The survey involved 2305 consumers who purchased a car in the 12 month period to October 2014. Of these, just 10% agreed there had been a change and 23% that there had been a slight change. The remaining customers answered that they weren't sure or did not respond.

From the people who had seen a difference, 73% recognised that there was a greater use of online tools and nearly half (47%) identified an increase in the number of places to buy a car from. In addition six out of ten car buyers (62%) thought the process had become easier.

Another conclusion drawn from the research was that the majority of prospective car buyers did not think the process had become easier: only 47% believed it did.

Chris Sutton, managing director of Black Horse, said: "It is surprising to see that the majority of consumers do not think that the car buying process has changed over the last three years. Clearly though for those that do feel that there has been a change the single biggest difference has been the use of the internet and other internet tools, which many have found made the overall process easier.

"Certainly the internet has provided consumers with more choice as to where they decide to gain their initial information from and indeed prepare them with more guidance before they step into a car showroom, giving the consumer more choice and confidence as to the decisions that they make."

Dealerships

The research found that dealerships were still the preferred option for car buyers with six out of ten (60 per cent) using this route when they last bought a car. The remaining customers used a ranged of other outlets such as private sellers, second hand dealerships and family members.

Dealerships therefore still play a vital role in the car buying process with over half (57 per cent) of car buyers visiting a dealership within a month of deciding to buy a car and one in five (19 per cent) deciding to buy a car after visiting a dealership.

Consumers also found the overall car buying process a positive experience, and over three-quarters (78 per cent) of buyers said they would recommend visiting a dealership when purchasing a car.

"Car dealerships clearly still fulfil an integral role in the car buying process with most consumers preferring the security of using a dealership and all the other benefits that a dealership can offer in terms of knowledge, variety of cars and competitively priced cars and finance," Sutton said.

Blackhorse's Managing Director also emphasized that dealers have to ensure that they are aware of all the finance options available to buyers. He also pointed out that the change of regulator to the Financial Conduct Authority has been challenging for the industry.

Sutton said: "The new framework has been far reaching and has had a significant impact for both lenders and dealers requiring even better and more transparent dealings with consumers in order to provide better consumer outcomes.

"Whilst there have been many hurdles for the industry as a whole to engage with and implement the FCA rules and guidance, dealers are gradually gaining a better understanding of how to put the rules and guidance into practice. We do see the changes as providing even more trust and transparency to consumers which can only be viewed as a good thing for the industry overall."

DATED: 30.01.15

FEED: MF