June 13
PRESS RELEASE
Quality of online motor finance applicants “good and improving” shows new iVendi research

The quality of applicants for online motor finance on used vehicles is “good and improving” according to new research by iVendi.

The market leader in online motor finance reports that currently 39% of all online applicants are approved by prime lenders.

This is better than most other online prime financial services channels but is slightly below the industry average for showroom visitors of around 50% from a dealer’s principal lender. 

Interestingly, the picture varies quite widely from dealer to dealer. Using Equifax’s Risk Navigator RN04 credit score, 77% of online applicants to all dealers score more than 200 – the usual minimum level for non-prime - and 36% more than 350 – seen as the prime typical benchmark - where an average APR of 10.8% is being quoted.

This improves considerably for a prestige dealer group quoting an APR of 7.9% with 92.5% being scored at more than 200 and 70% at more than 350.

iVendi CEO James Tew said: “One of the criticisms of online motor finance has been that the quality of applicants is not as good as those seen in the showroom. Technically, this is correct but the fact remains that the quality still probably surpasses any other online financial services channel for prime business.

“Results do vary, though, from dealer to dealer. Certainly, the high level of scoring for applicants to prestige dealerships where there is an attractive finance offering means that any business operating in that sector that is currently not providing  online finance is missing an important opportunity.”

“Also, we are seeing some evidence that the quality of applicant is good and improving over time as consumers become more comfortable with the concept of online motor finance and being ‘pre-approved’ for their preferred vehicle. They are becoming more skilled at learning how to use the wide range of online tools now available to help them find the finance product that is the best fit for their needs.”

iVendi’s figures were compiled from usage of its Quoteware finance calculator and Car Finance Checker eligibility tools, which process more than a billion financial quotations every day.

About iVendi

Founded in 2009, iVendi makes award winning e-commerce solutions that make vehicle selling easier for dealers, vehicle buying easier for buyers, and vehicle finance easier for all. With offices in Manchester and Abergele and products in use at almost 7,000 dealer locations in the UK, iVendi believes in innovating to deliver results.

For further details, please contact Simon Wells at Paperchase Public Relations on 07768 912430 or simon@paperchasepr.co.uk

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