Data from Buyacar’s online car finance calculators, has revealed that more than half of all car buyers (54%) reduce an initially suggested deposit, even though that pushes their monthly payments higher for the next two or three years.
The online retailer also confirmed that a 14% of consumers choose to pay nothing at all up front. Yhe analysis also confirmed that less than a quarter of buyers decided to lower their monthly outgoings by increasing the up-front payment. Under ten per cent were happy to stick with the first deposit suggestion offered to them.
Austin Collins, Managing Director of BuyaCar.co.uk, said, “Our research shows that, without the guidance of professional advisors, the instinct of a majority of car buyers is to push as much of their financial outlay as possible into the future – even if that means higher payments over time.
“For dealers and motor manufacturers there may be a lesson about finding a better balance between advertising low monthly payments and a reasonable deposit.
“In the push to keep the headline monthly repayments as low as possible they may initially alienate many car buyers who would really prefer to find a different balance between the down payment and the ongoing repayments.
Collins concluded, “In addition to buyers who are keen to put down a low deposit, a significant number are looking for no-deposit finance. This underlines the importance of working with a number of finance providers to ensure that customers get a competitive quote that’s appropriate to their needs and situation”.
Leave A Comment