Online finance proposals reach record levels, says Evolution Funding

Evolution Funding witnessed a record number of finance proposals through its online platform in June, as car buyers flocked to dealer websites in the hunt for a new car.

The motor finance broker, which provides dealer partners with digital solutions which facilitate end-to-end, online, self-serve finance sales, saw a 95% year-on-year increase in online proposals, reflecting the accelerated digitisation of the motor retail industry as a result of the Coronavirus pandemic.

Online proposals accounted for almost a third (32%) of the total number received by Evolution Funding in June, compared to 21% in 2019.

Total proposals increased by 29% year-on-year and showroom proposals by 11%, despite research from Auto Trader suggesting that a third of buyers are still nervous to visit dealerships in the wake of the pandemic.

Chris Coverdale, Evolution group sales director, said: “June has seen an encouraging return to business as usual, with many record-beating days for the company.

“We are expecting proposal numbers to level out, but we are receiving positive feedback from dealers about how they are tackling the crisis. What is certain is that being digitally-enabled is the key to maintaining momentum moving forward.”

iVendi says that online motor finance applications have risen by 53% since the period before the Coronavirus lockdown started, highlighting how quickly dealers across the UK have switched their business models to digital-first as they emerge from lockdown.

It is believed that around one in four car, van and motorcycle buyers are now applying for finance online.

Auto Trader research shows that 80% of car buyers are open to completing their purchase online or over the phone and only visiting the retailer to pick up a car.