Harry Leahey

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Half of UK car buyers say they’re concerned about their monthly vehicle finance payments, according to a recent survey from ALPHERA Financial Services


Among the respondents, 10 percent said they are 'very concerned', while another 40 percent felt 'somewhat concerned' about meeting their financial obligations.


This concern is more acute among younger buyers, with 55 percent expressing worry, in stark contrast to the mere 16 percent of those over 65 feeling the same pressure. 


Meanwhile, a significant 43 percent of respondents felt that dealers did not adequately prepare them for potential economic challenges that could affect their ability to pay in the future, such as inflation-induced rising household costs.


The expectations from dealers are clear: 66 percent of consumers believe dealers have a responsibility to discuss repayment obligations, 58 percent expect a thorough explanation of terms and conditions, including any additional charges, and 31 percent think dealers should clarify their qualifications for selling car finance packages.


Kirk Franks, Head of National Sales at ALPHERA, says the survey highlights the  broader economic challenges faced by consumers. He said: “These findings suggest that the cost-of-living crisis is still being keenly felt by many car buyers, with inflation, rising interest rates and higher fuel costs impacting affordability. 


“The survey also highlights the importance of dealers ensuring fair value and transparency – which our own Partners have been doing in line with new Consumer Duty.”


In terms of the most critical factor when considering vehicle finance, 86 percent of consumers said it was the monthly payment, followed by the deposit size (63 percent) and then potential additional charges (42 percent).

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Harry Leahey 08/11/23