FICO Survey: UK Car Buyers Shifting Toward Online Financing

Rate of borrowers getting loans online rose since last year, and is among highest of countries surveyed

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FICO

21 Mar, 2019, 09:00 GMT

LONDON, March 21, 2019 /PRNewswire/ --

HIGHLIGHTS:

  • In a new FICO survey, 21 percent of car buyers said they got their auto loan online, up from 15 percent last year
  • 37 percent plan to find their auto loan online next time
  • UK car buyers got their loans faster than most other countries surveyed

Car buyers in the UK are finding more of their financing online. That data comes from the second annual survey on auto financing conducted by leading analytic software firm FICO, which showed that:

  • 21 percent of UK buyers got their financing online, vs. 15 percent last year, an increase of almost 33 percent.
  • Of the nine countries in Europe and the Americas surveyed, only Chile saw more respondents getting loans online (24 percent).
  • 37 percent of UK car buyers said they would prefer to apply online the next time they buy a car.

More information: https://www.fico.com/en/latest-thinking/ebook/united-kingdom-2019-global-consumer-survey-vehicle-finance-perceptions

The research, which looked at how consumers view the financing aspect of their auto purchase for new and used vehicles, also showed that UK car buyers got their financing faster than any other country but Germany, which tied with the UK:

  • 55 percent of respondents got their financing in less than 30 minutes.
  • However, this was less than last year, when 63 percent of buyers waited less than 30 minutes.

Nonetheless, UK car buyers found the process easier than people in other countries:

  • 82 percent found it easy, just above Germany (81 percent) and Mexico (80 percent), and well above the USA (68 percent).

"Consumers are taking greater control of the auto financing process," said Steve Hadaway, general manager for Europe, the Middle East and Africa at FICO. "They are moving online in their search for a better deal. Those lenders that can instantly offer a superior financial package based on analysis of the applicant's data stand to gain."

FICO's independent research surveyed 2,000 adult consumers across nine countries, including the US, Canada, Mexico, Chile, Australia, New Zealand, Germany, Spain, and the UK. The respondents were between the ages of 18-64 who acquired a loan or lease on a new or used vehicle within the last 3 years.

About FICO
FICO (NYSE: FICO) powers decisions that help consumers and auto finance lenders come together. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational and customer facing decisions. FICO holds more than 190 US and foreign patents on technologies that increase profitability, customer satisfaction and growth in many industries including lending.  Using FICO credit risk lifecycle solutions and advanced analytics, auto lenders can accelerate their marketing, acquisition, customer management, financial crime prevention and analytics strategies to add value to their bottom line.

Learn more at http://www.fico.com

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