Consumers are more keenly aware of their finances than ever before, and carsales’ Finance Extension is the perfect tool to help them decide whether the listing is right for them
The financial reality for consumers looking for a new vehicle has never been in such focus. Interest rate rises, increased living costs and red-hot inflation mean that consumers are keener than ever to quickly determine just how much their next vehicle is going to hit their hip pocket week to week.
Interestingly, though, it appears that buyers are still focusing on the metal first and foremost, entering the new vehicle buying process with an open mind when it comes to financing the purchase.
A recent carsales Finance and Insurance survey from February this year revealed that 85% of buyers are yet to lock in a finance source when they start on the journey towards a new vehicle.1
More buyers than ever are also relying on finance to purchase a vehicle; in 2021, 65% of survey respondents indicated this need, compared to 44% in 2017.2
Enter carsales Finance Extension, a highly featured add-on that offers buyers a one-glance insight into repayment figures and comparison rates.
The Finance Extension module is an effective and affordable tool that drives consumer awareness of finance options directly from car listings on carsales.
The innovative integration ensures that finance options are front-of-mind when car buyers are viewing individual cars for sale, whether they are in the early stages of their journey to ownership or ready to enquire with a dealer.
Dealerships that activate Finance Extension on their carsales inventory can display weekly repayment figures, as well as current comparison rates, alongside the Drive Away price for new and used vehicle listings on carsales.
Not only does the Finance Extension tool help the buyer to get quick comfort on affordability, it offers tangible benefits to the dealer as well. One well-known European make found that, with Finance Extension activated on listings, detailed viewing lifted by 11.1%, when compared to similar listings without Finance Extension.3
The listings with Finance Extension also displayed a 42% reduction in delist times (typically reflecting decreased time to sell) and a $3,190 average improvement in delisted pricing per unit when compared to similar listings without Finance Extension3.
“We have been impressed with the quality of the enquiries and leads,” said one pre-owned sales manager of the dealer group when interviewed by carsales.
“Having finance payments on carsales is giving us an opportunity to enter the conversation earlier and win the business.
“Not only does it protect our F&I income, but it also provides our new clients with an improved sales experience.”
Next steps
To see how your dealership can benefit from Finance Extension on your listings, contact us below:
Sources:
1Finance and Insurance Survey, Feb 2022 n=1,046
2Ipsos Auto Futures: Journey to Vehicle Ownership Nov 2021, n=800
3carsales internal data of detailed views, delisting times and delisted prices for 53 cars of one dealer delisted between Jan and Apr 2022. Average detailed views, median delisting price and median time to delist were compared between 53 cars displayed with finance options and 53 comparable cars without finance options (same make, model, similar age and odometer reading)
