Canadian car buyers remain comfortable with receiving their auto financing from the dealership, with 66 per cent having applied for it right when the vehicle was purchased, according to a recent FICO survey.
Globally, 55 per cent of consumers on average will request auto financing directly from the dealership. In its 2019 Canadian Consumer Survey of Vehicle Finance Perceptions, FICO also found that 58 per cent of consumers plan to use the same financing method the next time they buy a car.
“In a time where many consumer decisions are being made independently online, when it comes to automotive financing, Canadians still want direction,” said Kevin Deveau, Vice President and Managing Director, FICO Canada. “More than any other market, Canadian consumers are trusting dealerships to make them an offer, and in most cases, they don’t feel the need to shop around.”
Deveau said the situation has created an opportunity for financing providers to streamline their processes to provide Canadians with the right offers — “quickly, and without damaging relationships.”
FICO’s report also reveals an unwillingness by consumers to seek financing online, as only 9 per cent showed an interest, versus the global average of 16 per cent. That being said, 17 per cent of Canadians would consider an online application process, versus 27 per cent of global participants. Still, 46 per cent of Canadians prefer the convenience and ease of one-stop shopping.
Furthermore, the majority of Canadians (80 per cent) fully understand the terms of the financing, but they want the process to be quick (less than 30 minutes), and many (81 per cent) seek wiggle room on the terms of their lease or loan.