Alphera Financial Services reports that the popularity of dealer finance has made customers wiser and prompted them to research, consider and haggle over their purchases.
Market research by the funder, which acts as an independent but is owned by BMW Financial Services, posits 65% of the public are confident enough to negotiate in the showroom, spurred by the current economy. Nearly half, 47%, of dealerships said shoppers were open to discussing finance, with 27% of customers asking for information about deals. Four-fifths of customers said they researched their car options online before heading to a dealership, where 35% are asking for extras to be included in the final car price.
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Andy Gruber, director of Alphera, said: "The tell-tale signs of how the economy is doing are often reflected in car sales, as cars are considered a luxury purchase. However, our research shows that despite talks of a double-dip recession, people still want to buy cars – new or used – they’re just being more savvy and loading up on knowledge before heading to the showroom.
"Dealerships are also offering more finance options, tailored to meet individuals’ needs. Once thought of as an expensive route to paying back your car, the pros far outweigh the dated cons these days, and finance is now considered to be a sensible way to pay for a car."
The Alphera research follows that of Manheim-owned Motors.co.uk which claimed more than 85% of the 669 consumers surveyed said they would expect up to £500 off the price of a car costing £5,000.
For cars priced between £5,000 and £10,000, 70% of consumers would expect more than £500 off the list price, and for cars costing over £15,000, more than half expect a minimum discount of £1,000.
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By GlobalDataMore than 80% of consumers would also expect a 12-month warranty as standard, while three-quarters want at least 10 months’ MOT on the car and 12 months’ tax.
richard.brown@timetric.com
