Demystifying Finance

Don’t let quality buyers walk away

Part-exchange and finance options are great tools for converting browsers into buyers. So we're combining them to make buying your cars even easier. We'll tell you more about it very soon - in the meantime, check out what we discovered when we surveyed 4,000 UK motorists...

Monthly payments bring extra buyers into market

Monthly payments can entice people into market, sparking their interest into the types of cars they might afford on finance. We also see in the research 1 in 3 buyers seeking finance deals because they can’t afford to buy outright.

What this means for retailers

If monthly payments attract buyers into market and give more people an affordable way to purchase, then retailers need to promote their finance offers online where buyers start their purchase research.

Is that “cash” buyer really a cash buyer?

With monthly finance easily available online from banks and specialist finance providers, it means buyers can secure finance before visiting the retailer, appearing as a cash buyer. We see this in the research with 1 in 3 people under 35 borrowing money from family, friends, banks or using credit cards to help them pay up front in "cash”. Problem is, they’re still purchasing on finance, just not from you the retailer.

What this means for retailers

Whilst banks and specialist finance providers may be able to offer lower interest rates, they also make it easy for consumers to interact with their finance options online. But we know that consumers also value the convenience of being able to manage their entire purchase under one roof with the retailer. It means there’s opportunities for retailers to capture more buyers, if they present their finance options to buyers earlier in the buying journey.

Are monthly payments the new currency of car buying?

Traditionally, retailers have led with the full retail price when advertising their cars. But 52% of buyers now consider the cost of their vehicle as a monthly budget, rather than the up-front sticker price.

What this means for retailers

With the monthly cost being an essential part of the decision-making process for buyers, it at least needs an equal presence alongside the full retail price and easy online experiences to match. Consider this trend when deciding how to price your vehicles and whether you choose to display finance options.

Finance baffles buyers. But it doesn’t have to...

Indeed, finance options attract buyers into market. But if they’re not presented and communicated clearly, they can easily become a barrier to purchase. Of all the products and services we surveyed, car finance was the most confusing and littered with jargon.

What this means for retailers

The best retailers make life easy for buyers by empowering them with the tools and information they need to find online. Review the way you introduce finance, streamline your processes and give buyers confidence by presenting that information online.

Finance bubble…what bubble?

It may seem obvious, but finance options present an opportunity to bring buyers into market. And once in-market, tempts them to spend that little bit extra on a better car with buyers spending on average £6,900 more when spreading the cost. But not irresponsibly. Indeed 82% of people still spend under their monthly budget.

What this means for retailers

The opportunity is there for retailers to promote their stock online with finance options, to help buyers discover that they might be able to afford a better car on finance – great for the buyer, and great for you the retailer.

Reach more buyers today

We've introduced finance options on Auto Trader, to help you capitalise on consumer trends towards monthly payments. Whether you're authorised by the Financial Conduct Authority or not, we’re making sure you don’t miss out on buyers who want to pay on finance.

Promote your own finance deals

Promote your own finance offers to the UK’s largest audience of in-market buyers, making it easy for buyers to discover your deals before they look for a loan anywhere else.

Learn more

Third-party finance

We’ve partnered with Zuto, so buyers can come to you with a pre-approved loan, making sure you don't miss out on buyers who want to pay on finance. We’re regulated by the FCA to advertise Zuto finance, and buyers can start their application online via your ads. An expert from Zuto will guide them through the process and once the loan is approved, the finance company will pay you directly.

Learn more