New vehicle intenders are more likely to finance, at 56% compared to 44% amongst used car shoppers. Those looking to buy a new vehicle are also less likely to pay cash, and a mere 12% say they intend to lease, versus 16% of those shopping pre-owned offerings.
Dealers are encouraged to leverage these findings to help fine-tune their strategy. While many car buyers are intent on using dealership financing options, there are those that may be intimated by it – especially since, in their online vehicle research, they may come across social media personalities who “fish for clicks” by claiming they’ve unearthed common dealership tactics to pad contracts and prices. Dealers looking to bring more efficiencies, build more loyalty with consumers and tap into one of the largest automotive finance networks can lean on Dealertrack’s lender solution software for all the tools they’ll require.
Automotive dealerships can bolster consumer confidence in their purchase decision by identifying and explaining all finance options up front. Being flexible is also key. Understanding car shopper hesitancy and leveraging this knowledge to present a variety of options to prospective buyers, such as budget friendly models or different financing terms, is the path forward to ensuring customers can find a vehicle that aligns to their needs, rather than deferring the purchase altogether. And even if customers plan to use their own financing, it never hurts to run the numbers to see if you can offer payments that better align to their financial situation.
Dealers advertising on AutoTrader.ca have added benefits of providing transparency to shoppers through AutoTrader iQ Price Badges, an effective tool at identifying how each vehicle is priced compared to fair market value. Additionally, consumers can leverage the Payment Calculator on Vehicle Details Pages (VDP) to investigate their payment options ahead of connecting with the dealership, driving more informed shoppers to your lot.