• DD-Square-Logo_resized
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda Summary
      • Hotel & Travel
      • FAQ
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Console
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Testimonials
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Contact Us
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe
  • .
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda Summary
      • Show Schedule
      • Hosted Dealer Program
      • Hotel & Travel
      • FAQ
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Console
      • Exhibitor Services Manual
    • Education
      • Conference Overview
      • Conference Speakers
      • Session Schedule
  • RESOURCES
    • Webinars
    • Downloads
  • ABOUT
    • Conference Overview
    • Testimonials
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Get Updates
  • NEWS
    • AUTO RETAIL NEWS
    • PRESS RELEASES
    • DIGITAL EDITIIONS
    • SUBMIT EDITORIAL
    • SUBSCRIBE

Las Vegas: Oct 17-19, 2023

REGISTER NOW EXHIBIT / INQUIRE
Q

NEWS:

General | Sales & Marketing
August 24, 2012

Survey: Negotiating Price Worst Part of Buying a New Car

Posts:
General | Sales & Marketing
August 24, 2012

Survey: Negotiating Price Worst Part of Buying a New Car

CarFinance.com survey finds consumers apprehensive about new car price negotiations and low interest rates; offers car buying and auto finance tips to simplify process

IRVINE, Calif. — In part two of a recent survey from CarFinance.com, a website dedicated to providing lending to below-prime consumers and a resource for consumers seeking auto financing information, respondents ranked negotiating the sales price as the worst part of buying a new car (62 percent), while getting the lowest possible interest rate was ranked as the most important part of the auto financing process.

The snapshot survey, which was conducted online among over 2,000 consumers1, also found that arranging/negotiating financing ranked as the second-worst part of buying a new car (57 percent) behind negotiating price, while getting the lowest possible interest rate (37 percent) and lowest monthly payment (30 percent) trumped other important factors such as convenience and privacy… even getting approved.

“Despite a positive lending climate and a surge in new car sales this year, the challenges of getting the best price and interest rate still preoccupy car buyers,” said Jim Landy, CEO of CarFinance.com. “These factors shouldn’t roadblock someone from getting the car they want, however. A little bit of homework can really help expand a consumer’s auto purchase and finance options, especially in this post-recession upswing.”

CarFinance.com Survey Highlights

When asked to rank the facets of their last car buying experience on a scale of 1 – 4 (with 1 being “best” and 4 being “worst”) respondents indicated researching vehicle makes and models and shopping and test driving were the best at 66 percent and 60 percent respectively. Negotiating the car sale/price and arranging/negotiating financing were ranked worst at 62 percent and 57 percent respectively.

The Best and Worst of Buying a Car

Researching vehicle makes and models Shopping and test driving Arranging / negotiating the financing Negotiating the car sale/price
Best 66% 15% 11% 8%
Second 18% 60% 12% 10%
Third 8% 15% 57% 20%
Worst 9% 9% 20% 62%

When asked what was most important regarding the auto financing process, over two-thirds of respondents said the lowest possible interest rate and lowest monthly payment were most important (37 and 30 percent respectively), above other considerations such as saving time, getting approved or privacy.

The Most Important Part of Car Financing

37% Lowest possible interest rate
30% Lowest monthly payment
14% Saving time / a simple, straight forward process
13% Getting approved
6% Anonymity and Privacy

New Car Buying and Financing Tips

CarFinance.com offers consumers the following tips to help simplify the new car buying and financing process.

1)  Do your vehicle homework.

Build and price your new car online ahead of time and be open to comparing similar makes and models since you may find a comparable vehicle for less money.  After your test drive, use the Internet to check local dealer inventory for price and availability and be sure to research any current offers or special rebates for the specific make and model you’re interested in buying.

2)  Do your financing homework.

Comparison-shop available finance rates, so you don’t have to rely solely on the dealer’s interest rate (which could end up meaning you lose any ‘great’ deal you have negotiated on the car’s price). Use online calculators to figure out what you can actually afford each month, what the monthly payment would be on a range of loan amounts with varying interest rates. Approach it like a research project, and it will pay off. Online research isn’t just the best psychological weapon, it’s also the best way to ensure that you will make the right vehicle and lender decision and get a good deal.

3)  Secure an auto loan ahead of time.

Get approved for an auto loan before you visit the dealership. Negotiations about sales price are usually always easier and more successful if you have cash in hand. Even if you secure a loan through the dealer, get approved ahead of time to eliminate the extra time and work of qualifying there. Direct lender CarFinance.com, which specializes in auto financing services for the below prime consumer, offers a convenient, private, virtually paperless loan application process and timely approvals online.

Landy noted that credit markets have significantly improved for people with below prime credit who now represent almost half (46 percent)2 of the auto loan origination market. In July 2012, below-prime approvals were up 24-plus percent.3

“We understand the concerns expressed by consumers about the financing process which is why we dedicated CarFinance.com to both empowering consumers in the auto financing process and making it easier, more comfortable and hassle-free…all while helping them find that all important low rate,” said Landy.  “The rebounding economy means credit opportunities for all borrowers have significantly improved, and consumers who legitimately can be approved for auto loans should not be left out simply because they fear the process.”

1 Survey methodology:  Survey of 2,011 U.S. Consumers aged 18+, conducted electronically from June 20-July 19, 2012.

2 Equifax data for 2010-2011, cited March 2012:
http://news.equifax.com/index.php?s=18010&item=126087

3 According to CNW Research cited in an article from F&I and Showroom on July 24, 2012:
http://www.fi-magazine.com/News/Story/2012/07/Uptick-in-Subprime-Approvals-Helping-July-Sales.aspx

About CarFinance.com

CarFinance.com’s (www.carfinance.com) management has helped hundreds of thousands of consumers with less-than-perfect credit purchase a quality, late-model vehicle. Its mission is to empower the growing ranks of below-prime new and used car shoppers by providing a time- and money-saving way to get their car loan pre-approved before they hit the dealership. Through CarFinance.com car shoppers can apply for a new or used car loan, or potentially lower their existing car loan payments through refinancing, from the comfort of home – and because the entire process is completed online directly with the lender, personal information is kept private, safe and secure. CarFinance.com enables car shoppers to walk into the dealership with their financing in place and their heads held high, and secure a better deal by confidently negotiating price as if they were “cash buyers.” The site also provides consumers with easy-to-use finance empowerment tools and content, such as calculators, articles, tips and advice.

CarFinance.com is led by the team that built Triad Financial, one of the largest non-prime U.S. auto finance companies, and is headquartered in Irvine, California.

SOURCE CarFinance.com

General•Sales & Marketing

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Posts Industry Press Releases

TruVideo Integrates with Sunbit to Bring Auto Service Customers Access to Pay Over Time Option

Posts Dealer Ops & LeadershipTrending Industry News

How Auto Dealerships Can Prevent Data Breaches

Posts Industry Press Releases

TruVideo Integrates with Sunbit to Bring Auto Service Customers Access to Pay Over Time Option

Posts Industry Press Releases

Focus Advisors Represents Vinart Dealerships in their Body Shop Sale and Services Agreement

Posts Sales & Variable OpsTrending Industry News

The Power of Transparency in Used Vehicle Sales

Posts Marketing & AdvertisingTrending Industry News

How Digital Marketing Propels the New Way to Sell Cars

Posts Dealer Ops & LeadershipTrending Industry News

Standing Too Close to the Elephant

Posts Sales & Variable OpsTrending Industry News

Enhancing and Transforming the Automotive Sales/Service/Parts Lifecycle with ChatGPT

NEWSLETTER

SUBSCRIBE

DEALER MAGAZINE

Dealer Magazine March/April 2023 Issue Featuring an Interview with NADA 2023 Chairman
MAGAZINE
Digital Dealer Logo White
FOLLOW US ON
  • Follow
  • Follow
  • Follow
  • Follow
  • Follow
© 2023 Emerald X, LLC. All Rights Reserved.
ABOUT    CAREERS    AUTHORIZED SERVICE PROVIDERS    TERMS OF USE    PRIVACY POLICY