Practically a 3rd of drivers (31%) nonetheless don’t know the finance choices can be found to them when shopping for a used automotive, new analysis from AA Vehicles, the AA’s used automotive web site, reveals.
Demand for automotive finance is rising way more sharply amongst used automotive consumers in comparison with these shopping for new.
In keeping with figures from the Finance & Leasing Affiliation the whole worth of recent finance taken out on used vehicles in April 2022 was up 34% in comparison with the identical month in 2021, whereas there was a extra modest 1% improve within the new automotive market.
Regardless of this, some drivers are nonetheless not totally knowledgeable concerning the choices obtainable to them. Whereas 61% of drivers have been conscious {that a} private mortgage from a excessive road lender, comparable to a financial institution, can be utilized to purchase a used automotive, half (49%) realised this was additionally true for Rent Buy agreements and solely a 3rd (34%) thought Private Contract Buy agreements might be used.
In keeping with the AA Vehicles the lack of understanding that automotive finance agreements can be utilized for second-hand vehicles signifies that some drivers should not capable of make a fully-informed choice concerning the selections of autos that they may afford inside their finances.
Over 80% of the practically 14,000 drivers surveyed mentioned sellers may provide tailor-made recommendation to make the method of accessing automotive finance simpler and higher.
Two in 5 (44%) drivers mentioned it could be useful if sellers defined all the prices concerned in making a purchase order by automotive finance, from the month-to-month funds to any further costs.
A 3rd (31%) mentioned sellers may additionally make the automotive shopping for course of higher and simpler in the event that they defined the several types of automotive finance obtainable.
In the meantime a fifth (22%) would need a low cost on the car’s price ticket if automotive finance have been taken out by the supplier, whereas 18% would need the supplier to clarify what would occur if the motive force’s circumstances modified they usually may not afford the month-to-month funds.
James Fairclough, CEO of AA Vehicles, mentioned: “Automotive finance has proved more and more standard amongst used automotive consumers this yr, however it’s worrying to see simply what number of have misconceptions concerning the finance choices open to them.
“Whereas the vast majority of drivers are conscious that they may take out a private mortgage, fewer realise that Rent Buy and Private Contract Buy agreements can be utilized on second-hand vehicles in addition to new.
“It is necessary that drivers are conscious of all their choices, to allow them to make a fully-informed choice concerning the automotive they’re shopping for and the way they’re going to pay for it.”
