Eight out of 10 UK car buyers are signing with the first finance deal they are offered without shopping around, according to a new report by AA Cars.
The research, which was conducted through an AA-Populus poll of over 16,000 drivers also found that less than a fifth of drivers using car finance (18%) to buy their vehicle actually compared offers to make sure the deal they were selecting was the best one available to them.
Twelve percent admitted that they simply couldn’t be bothered or didn’t have the time to shop around.
Nevertheless, most drivers (60% overall) agreed that they are happy with the finance they have chosen. But, there is a satisfaction age split: nearly three quarters of over 65’s (72%) are happy with their car finance deal, compared to less than half (47%) of 18-24’s – possibly reflecting the greater experience of, and wider range of options for, older drivers.
James Fairclough, AA Cars chief executive, said the results highlighted how important it is for customers to have access to credit checking technology online. This gives car buyers an indication of how likely they are to be approved for finance, but without leaving a footprint on their credit record.
Fairclough said: “With complex jargon and a wide range of financial products and rates available through car dealers, banks, manufacturers and other providers, it is no surprise that car finance is baffling for many to understand.
“Although it is good to hear that 6 out of 10 people are happy with their deals, many of them could be paying a lot less if they had shopped around first.”
