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Price Negotiation Worst Part of Buying Process, Survey Says

Results of a survey conducted by CarFinance.com shows that consumers hate new-car negotiations the most. As for the F&I process, getting the lowest possible interest rate is most important.

by Staff
August 24, 2012
2 min to read


IRVINE, Calif. —New study from CarFinance.com, a website providing auto loans to below-prime consumers, showed that consumers rank price negotiation as the worst part of the new-car buying process (62 percent). As for the F&I process, respondent said getting the lowest possible interest rate is most important.

Conducted online among more than 2,000 consumers, the survey also found that arranging and negotiating financing ranked as the second-worst part of buying a new car (57 percent), while getting the lowest possible interest rate (37 percent) and lowest monthly payment (30 percent) trumped other important factors such as convenience, privacy, and even getting approved. 

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"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." 

When asked to rank the facets of their last car-buying experience on a scale of 1–4 (1 being "best" and 4 being "worst"), respondents said 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. 


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, more than two-thirds of respondents said the lowest possible interest rate and lowest monthly payment were most important (37 and 30 percent, respectively), both coming in above other considerations such as saving time, getting approved and 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

 

"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," Landy said. "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."

 

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