According to a new Kelly Blue Book Market Intelligence Survey, 64 percent of new-car shoppers say they plan to research their financing options on the Internet. The vehicle information site also announced that it has entered into exclusive partnerships with Bank of America and Autobytel Inc.'s Car.com to offer prime and subprime financing to visitors of KBB.com.
The new KBB study shows that 66 percent of new-car shoppers plan to finance some or all of the cost of their next vehicle purchase, while 34 percent plan to pay the entire cost of their new vehicle in cash.
Of those new-car shoppers planning to finance their next vehicle, 48 percent plan to use money from a trade-in as a down payment and finance the rest. Forty-six percent said they intend to use cash as a down payment and finance the rest, while 6 percent plan to finance the entire cost of their next new vehicle.
In addition, 44 percent of the group plans to obtain vehicle financing pre-approval through a bank/credit union branch, 43 percent plan to secure financing at the dealership at the time of purchase, and 6 percent plan to apply for pre-approval through an online vehicle financing company
“In these tough economic times, we’re finding that the majority of new-car buyers plan to finance at least some of their next vehicle purchase. Because of relatively lower monthly payments, five years is the most appealing loan term,” said Jack R. Nerad, executive editorial director and executive market analyst for KBB.com.
KBB.com has recently expanded its collaboration with Bank of America to provide users with information on prime vehicle financing, including estimated interest rates, and the opportunity to apply for a loan from Bank of America. Visitors with credit challenges and in need of local auto-finance assistance will have access to Car.com’s network of participating dealers and lenders through the new partnership.
“Kelley Blue Book’s offerings from Bank of America and Car.com allow for all kbb.com site visitors to have access to great vehicle financing resources on kbb.com, no matter what their current credit situation may be,” said Damon Bennett, vice president of business development and partnerships for KBB.com. “We are committed to providing our site visitors with all of the information and resources they need to make confident purchase decisions when buying their next new or used vehicle, and these recently announced collaborations with Bank of America and Car.com are another step toward achieving that goal.”
The new Kelley Blue Book Market Intelligence survey about vehicle financing studied 324 in-market new- and used-car shoppers on Kelley Blue Book’s kbb.com from February 22, 2011 to March 4, 2011.