CarGurus has continued to build and improve products to support our dealer partners. Check out the key CarGurus product improvements you can expect now, and in the weeks to come.
We are excited to announce the launch of CarGurus Convert, our newest digital retail solution to help you jump-start the deal-making process by providing shoppers with the online experience they expect. More importantly, CarGurus Convert will help you connect with shoppers faster, unlock new low funnel leads, and strengthen your profit centers.
As shoppers increasingly look to complete more of the car-buying process online, auto financing is an area within digital retail where dealers can help facilitate a more seamless online to in-store experience for both your staff and your shoppers. We wanted to understand just how much shoppers know about the topic though, so we surveyed over 750 shoppers to find out. The results? Shoppers still need more resources and tools on the subject.
Industry publications like Forbes, Car and Driver, Automotive News, and Auto Remarketing are taking note and digging into our data to provide more insight for dealers:
New Consumer Financing Study reveals shoppers’ desire for more financial transparency earlier in their path to purchase
In November 2020, CarGurus surveyed 754 shoppers on their understanding of auto financing. Overall, the study found that shoppers want access to more financing information earlier in the shopping journey and they value being able to start the process online. Addressing the shift towards online financing will ultimately provide a better shopping experience for both consumers and dealers. Here are some of the key takeaways – and you can read the detailed findings here.
As the auto industry continues to navigate challenges posed by Covid-19, more and more car shoppers are turning to digital tools and resources for safer car shopping. Online financing, in particular, has become critical to dealership success. From January 2020 to September 2020, we saw a 78% increase in Pre-Qualified Leads1 on CarGurus, leading us to further invest in shopper education around the value of online financing and promotion of our Finance in Advance feature. This trend also aligns with recent consumer sentiment, with 52% of car shoppers saying that they now prefer financing online (compared to only 36% pre-pandemic).2 Beyond the obvious safety reasons, shoppers’ increased openness to financing online is also a result of their desire to save time and feel more financially prepared.
CarGurus is excited to announce the launch of a new financing integration, which will allow our dealer partners to access, copy, and submit completed credit applications from your CarGurus Pre-Qualified Leads at no additional cost directly within RouteOne. RouteOne is a leading provider of on-demand finance and insurance software, and is integrated with all major credit bureaus and over 1,500 financing sources.
Whether it’s due to a vehicle breaking down, a new commute, a growing family, or any number of reasons, a vehicle purchase is essential for many. That’s held true even during the current health crisis: 68% of those planning to buy this year cited the purchase as necessary, according to the CarGurus COVID-19 Sentiment Study in April. However, months later and our follow-up study found that about half (48%) of car shoppers aren’t as confident in their ability to afford a vehicle as a result of the pandemic.
As a result of consumers’ dwindling confidence, demand for financing is increasing. Before the pandemic, 49% of car buyers planned to finance their purchase. Now, 60% plan to or have already done so. Additionally, around one-third of those considering financing lost confidence in their ability to get approved (33%) and the financing rate they’d expect (34%).
Update: “Dealer Fees” now available in financing offers
We’ve made an adjustment to the pre-qualification process for shoppers based on dealer feedback. Shoppers who are pre-qualifying for financing will now see “Dealer Fees” added to the offer, and this will provide them a penny-perfect offer to work with you. This feature enhancement will help our dealer partners set the right expectations and minimize shopper objections during the sale. For any dealers without a listed Dealer Fee, we’ll use a state average.
Call your CarGurus rep at 1-800-CARGURUS to add your custom dealer fee.
Our product teams have been working hard to improve CarGurus’ financing feature, the latest way we’re helping you connect with low-funnel shoppers. With the improved financing feature, shoppers are able to prequalify for financing with lenders you already work with right from the VDP. Some reasons you’ll want to use the financing feature are: