In the latest episode of Inside Automotive, Pete MacInnis, CEO of eLEND Solutions, joins us to discuss the most recent study conducted by eLEND regarding consumers wanting more car loan information online.
This recent survey is the second of a three-series national survey conducted with Automotive News in 2023 that reflects how dealers and consumers feel about certain industry trends.
Key Takeaways
1. The first survey asked questions regarding affordability and online payment quotes. The results found that 68% of dealers say monthly payments are more or equally important as the selling price from a consumer’s point of view. MacInnis asserts, “We know that affordability averages out to be $50,000, $745 average monthly, we really wanted to drill it down and see how the consumer and dealer are dealing with that.”
2. Another question in the survey focuses on online payment calculator tools. It found that 67% of dealers use online tools to help car buyers calculate vehicle monthly payments. As a result, 52% of the dealers that responded said that their online payment quotes should be within $50 of the final contract term payments. However, more detailed questions are required to correctly evaluate payment terms and quotes.
3. The results of the second survey revealed that payment quotes are often inaccurate and misleading. One of the survey responses indicated that 98% of dealers feel that there is a gap between how they want to sell and how buyers want to buy.
4. The survey also asked about affordability, which led to the finding that 97% of dealers agree or strongly agree that there is a trust gap between the consumer and dealer when it comes to arriving at ‘THE’ deal, which often becomes ambiguous in terms of financing.
5. Most customers prefer to receive payment information before scheduling in-store appointments. Meanwhile, 94% of dealers quote buyer payments before receiving lender loan decisions. Additionally, 80% of dealers say the reduced price transparency from lenders is the biggest obstacle to providing more deal clarity.
"We will publish the third part of this survey before the February NADA convention." — Pete MacInnis
