Drivers intimidated by used car confusion
New research has found that motorists do not understand how much buying a used car will really cost them, making the process intimidating, complex, and stressful.
The report by digital bank Zopa highlights that over half of UK drivers (52%) will be in the market for a used car when it comes to buying their next vehicle – with almost the same figure (49%) using a loan or credit to fund their purchase.
Despite cost being a huge factor for many, and a total £40.7bn spent in the UK on car finance in 2022 alone, a surprising three-quarters of motorists (77%) admit to not knowing what the term APR (Annual Percentage Rate) stands for when buying a car, with 19% failing to consider the APR when calculating the true cost of their next vehicle.
The research also found that some 50% of car owners felt that buying a car was an intimidating process, while 45% of British car owners wouldn’t feel confident negotiating on price when buying a car, and 41% feel they have over-paid for a car in the past.
Tim Waterman, chief commercial officer at Zopa Bank, said: “Car finance is, on average, the second largest monthly payment consumers make after their rent or mortgage. Digitising the car financing journey drastically improves how people access finance, bringing the experience up to standard with how people borrow and save money – online.”
