A leading provider of finance and insurance (F&I) programs and services has published a new survey to better understand consumer perspectives on automotive products and the factors impacting purchase decisions when shopping for a vehicle at a dealership.
The online survey conducted Protective Asset Protection in April had over 300 recent car shoppers participated. Consumers across all pertinent car-shopping age groups were surveyed, including across all generations of car shoppers—Baby Boomers, Generation X, Millennials, and Generation Z—with 82 percent of all respondents indicated they are either very familiar or somewhat familiar with F&I products at a dealership.
Among those surveyed, 16.8 percent purchased maintenance service plans,16.5 percent purchased Guaranteed Asset Protection (GAP), and 18.1 percent purchased a vehicle service contract (VSC) or mechanical breakdown protection for their vehicle.
Online Appeal
Travis Wools, VP of Marketing and Communications for Protective Asset Protection, noted that empowering car shoppers with the ability to research and purchase automotive F&I products online improves the consumer experience, providing an array of options at their fingertips.
Across all generations, 57 percent of participants would prefer to research F&I products online and purchase in the store, while 30 percent would prefer to both research and purchase F&I products online.
“By embracing the digital landscape, we ensure convenience and accessibility, empowering our dealers’ customers to make informed decisions on their terms,” said Wools in a press statement with the release.
Generational Breakdown
Across all age groups, approximately 55 percent noted they needed to utilize their F&I benefits because they either needed major repairs on their vehicle and the product benefits helped save significant money, or they only needed minor repairs and the additional benefits were somewhat helpful.
When asked what factors influenced their decision to purchase F&I products across all generations, 18.5 percent selected price/monthly payment of products, 18.2 percent selected overall budget, and 16.2 percent selected cost of vehicle repairs.
Broken down by cohorts, Millennials and Gen X mentioned those three items as the top factors that influenced their purchasing decision. In addition, Gen Z participants selected the convenience of research/shopping for F&I products as their most influential factor (34.9 percent).
Importance of F&I to Consumers
Protective Asset Protection officials offered this indicates that while budget and cost are key considerations, the ways in which F&I products are made available for research and purchase is becoming increasingly important.
“In today’s fast-paced world, convenience is paramount, and offering online F&I solutions aligns with our commitment to helping dealers enhance the car buying journey,” said Wools.
“It’s not just about selling cars; it’s about providing comprehensive solutions and peace of mind every step of the way, in a method that’s amenable to all shoppers regardless of age.”
