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.
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.
"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."
More F&I

Modern Technology Objection Handling
In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.
Read More →
Consistency at Scale: Driving F&I Performance
With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.
Read More →
Gitty Up on GAP
The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?
Read More →
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →