The car industry is always evolving and this year looks set to be one of the most pivotal years yet, but what are the biggest changes to look out for in the motoring industry? With mortgages joining the digital revolution and more and more brokers taking their business online, the same is true for the car finance market.
Customer appetite for online finance
The customer is keen to see finance online and the technology is already there, so the onus is on the dealer to deliver the goods. Customers want a comprehensive and complete online finance solution that includes a simple calculator tool and a wide choice of lenders offering a sizeable selection of attractive products.
Research shows that most customers would be confident about financing a car online, but the showroom also plays an important part in the buying process. While the journey may start online, the showroom is where it is completed.
Payment model is similar to subscription service
A new and exciting subscription service is the all-in-one payment model as launched by Volvo and Jaguar Land Rover. This involves access for the driver, rather than ownership, and involves the payment of a monthly fee similar to a subscription service but with no up-front payment. The payment could include insurance, breakdown cover and servicing. One negative point is that this can be an expensive option for the customer, but there are hopes that companies can reduce this monthly fee and capture more customers. With more consumers turning to subscription services such as Netflix and Spotify, the car industry looks set to follow this trend.
If you operate a business, motor trade insurance is essential. Providers such as quotemetoday.co.uk/motor-trade-insurance can offer options to suit all personal circumstances, whether you are looking to insure several vehicles or a large fleet.
Personal contract purchase (PCP) is rising in popularity, especially in the used car sector, assisting many customers with affordability. If you like to change your model regularly but prefer low monthly payments to fit your personal circumstances, personal contract purchase could be the answer. The amount you will have to borrow is based upon how much the finance company predicts the vehicle will depreciate in value over the deal term minus the deposit you have put down.