Online Financing Improves Consumer Perception of Dealerships, Study Finds

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Customers who perform their car financing online are found to have a more favorable experience at the dealership, increasing the likelihood that they will return in the future, according to a new survey by SpringboardAuto.

SpringboardAuto — which connects consumers, lenders, and dealers through it’s mobile-friendly platform — conducted a survey among its consumers who had recently completed online financing. Consumers’ likelihood to provide the dealer a 5-star rating increases by 133% if they completed their financing online, the company found.

“I think it shows that consumers are embracing an online loan process, which in turn improves their perception of the dealer,”Jim Landy, chief executive and founder of SpringboardAuto, told Auto Finance News.

Only 16% found the dealership experience hassle-free and convenient, while 5% wanted to finance inside the dealership. However, 47% of consumers who financed online said they would return to the dealership to make another purchase as compared to 21% who financed inside the dealership. Additionally, 55% would recommend the dealership to a friend after obtaining financing online.  

“Dealers have an opportunity to increase their efficiency, reduce the cost of sale, and generally have a happy customer who’s more willing to come back to buy another car,” Landy said. “… The consumer obviously gets a better process or experience that resonates well for the dealer in terms of their relationship to the customer.”

For more content like this, attend the third annual Auto Finance Innovation event, slated for March 7-8, at the Parc 55 in San Francisco. For information, or to register, visit autofinanceinnovation.com.

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