Topic: financing

Stressed, but saving: understanding the pandemic’s impact on consumers’ needs for financing

Posted by Meg Bernazzani on August 12, 2020

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: 71% 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 (47%) 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, 47% of car buyers planned to finance their purchase. Now, 56% plan to or have already done so. Additionally, around one-third of those considering financing lost confidence in their ability to get approved (31%) and the financing rate they’d expect (34%).

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Topics: consumer sentiment, financing, industry insights