New Survey: Consumers Doing Their Homework, Planning More Research on Auto Financing Options

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A new survey conducted by AWARE, a nonprofit consumer education group focused on auto financing, found positive trends among consumers regarding their future auto financing plans.

Financial literacy efforts are paying off as more and more consumers feel informed and know about their options when it comes to auto financing

More than eight out of 10 Americans (83%) know they have many options when it comes to vehicle financing and 58 percent feel informed about the auto financing process, according to a new public opinion survey.

The survey, conducted by AWARE, a nonprofit consumer education group focused on auto financing, also found positive trends among consumers regarding their future auto financing plans. The survey showed that:

  •     67 percent plan to do more research on their financing options as they consider their next vehicle purchase, with African American (77 percent) and Hispanic (80 percent) consumers the most likely to do so.
  •     54 percent will check their credit score before purchasing their next car or truck.
  •     64 percent will compare interest rates from different sources.
  •     70 percent say they will negotiate their financing on their next vehicle purchase.

"Financial literacy efforts are paying off as more and more consumers feel informed and know about their options when it comes to auto financing," said Eric Hoffman of AWARE (http://www.AutoFinancing101.org). "And while this news is encouraging, clearly an education opportunity still exists for organizations like AWARE to fill.”

The comprehensive survey was conducted to find out how consumers approach the vehicle financing process. Among the other important findings:

  •     Nearly 150 million Americans (71 percent) want more information from the vehicle financing industry, especially African Americans (83 percent) and young consumers between the ages of 18 and 24 (86 percent).
  •     Nearly half of all consumers (47 percent) selected "negotiating financing rates" as their first or second choice for what they’d like more information about, followed by "finding good rates" (42 percent).
  •     When given a choice, consumers chose the Internet (41 percent) as their preferred medium for receiving information on auto financing.

"We recognized early on that consumers preferred receiving information via the Internet. That's why we started our website, http://www.AutoFinancing101.org,” Hoffman said. "Now, this research gives us a further glimpse into the needs of consumers related to the auto financing process. It will help us as we continue building educational offerings that consumers can use in today's busy world."

AWARE was formed to build a greater understanding among consumers about how auto financing works. The group's primary initiative is its website, http://www.AutoFinancing101.org, which aims to ensure that potential buyers of new and used autos have the tools and resources they need to successfully navigate the auto financing process. AWARE focuses exclusively on educating consumers on vehicle financing in a web environment free of advertising or lead generation sales tactics.

The national poll, conducted for AWARE by KRC Research, questioned 3,806 Americans aged 18 and older, from July 5-20.

AWARE’s membership includes the following:

American Financial Services Association

National Automobile Dealers Association

National Association of Minority Automobile Dealers

American International Automobile Dealers Association

American Honda Finance Corporation

American Suzuki Financial Services

AutoNation

DaimlerChrysler Financial Services Americas

Ford Motor Credit Company

GMAC

Group 1 Automotive, Inc.

Jaguar Credit    Land Rover Capital Group

Lithia Motors

Mazda American Credit

National Auto Finance Company

Nuvell Financial Services

Saab Financial Services Corp.

Sonic Automotive, Inc.

Toyota Financial Services

United Auto Group, Inc.

Volvo Car Finance North America

Wells Fargo Auto Finance

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Amy Thompson
AWARE
202-285-2997
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