Affordability remains a front-and-center concern for car buyers, and dealers play an important role in facilitating transparency in the process.
Driving the news: According to Capital One $COF ( ▲ 1.07% ) Financial Services President Sanjiv Yajnik, pointing customers toward digital financial literacy tools and opening these discussions early on are both crucial for dealers to build trust and customer confidence.
“Dealers have a unique opportunity to act as advisors in the car buying process–especially when it comes to helping car buyers understand what they can afford,” Yajnik tells CDG News. “By taking the time to understand a buyer's needs and explain realistic financing options, dealers can create value.”
Why it matters: Yajnik points out that buying a vehicle is one of the largest purchases consumers make in their lifetime, putting dealers in the delicate role of helping buyers navigate their own financial options.
As for what measures dealers can take to build added transparency into the car-buying process, Yajnik says “anything that saves a car buyer from an unwanted surprise later in the car buying process; tacked-on charges and fees that weren’t discussed up-front.”
Encouraging customers to utilize digital tools to learn more about their financing options can play an important role in building customer confidence, often even before they walk into the dealership.
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Similarly, the Capital One 2024 Car Buying Outlook showed that customers who submitted a pre-qualification or soft pull were 45% more likely to say that their car-buying experience was transparent.
“When car buyers walk into the dealership already understanding their financing options, it can shift the dynamic,” he adds. “It’s more than closing a sale. It’s about building long-term relationships based on transparency, education and shared understanding.”
Bottom line: The recent rise of digital financial literacy tools for customers is only half the equation, however, as dealers are tasked with helping to translate this information into real confidence for car buyers. Doing so requires opening these discussions with customers early on, and maintaining transparency around the numbers throughout the entire process.
“An open dialogue early on can offer more than information- It can shift the overall car buying experience from a negotiation to collaboration,” he explains. “That culture of openness can build trust and possibly a loyal, lifetime customer.”
Editor's Note: This article features an interview with a Capital One employee. Capital One is an advertising partner of CDG News. The editorial content and interview were conducted independently and were not sponsored or influenced by Capital One's advertising relationship with CDG News.
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