Onbe, a corporate disbursements platform, recently released findings from its summer automotive survey, which polled over 700 auto shoppers on their preferences when receiving payments from their lenders, dealerships or manufacturers. While purchase incentives are among the top three factors that influence a consumer’s decision on when to buy or lease a new vehicle, the survey showed that businesses have an untapped opportunity to build lasting loyalty by offering frictionless, fast payouts while improving their efficiency. Whether starting their journey with an automotive brand from an incentivized test drive to the trade-in process to the maintenance of the vehicle, payments are a key contact point between automotive customer and automotive companies – and by reducing friction, the companies can exceed customer expectations.
According to the survey, 43% of respondents indicated that lack of choice was a leading cause of frustration with their payment experience, and 56% of buyers or lessees aren't offered a choice in how they get their loan or lease overpayment or automotive incentive. Payments choice gives automotive companies the chance to better meet customers’ needs by distributing payments easily, quickly and conveniently. Beyond the initial point of purchase, dealerships and manufacturers can leverage modern modalities to execute their incentive or rebate programs to acquire and to cultivate loyal customers – through convenient goodwill payments in the case of a mistake; dealership maintenance; or additional services, such as tires or fuel incentives. Further results show an opportunity for dealerships to drive spend-back, with 47% of respondents saying they are likely to spend back the incentive payment with the dealership they receive it from.
“Our longstanding experience in providing solutions for top automotive brands is bolstered by the findings in this survey - highlighting the importance of choice and a modern payout experience, which produces loyalty-building opportunities long before and after the initial sale of the vehicle”, said Onbe CEO Bala Janakiraman. “An effective fintech partnership that delivers convenient, frictionless payment solutions, empowers auto businesses to exceed today’s consumer expectations.”
Additional findings from the survey include the followig:
55% of consumers have received an automotive payment in the past, 55% receiving an incentive or deal payout and 34% for a loan or lease overpayment refund.
For automotive payments over $100, nearly three quarters prefer payments made to their digital wallets, such as PayPal and Venmo, or direct to bank solutions, such as ACH.
47% of auto shoppers say the leading cause of frustration with their payment experience is time it takes to receive their funds.
Offering payment choice and fast, frictionless payment methods not only helps to build brand loyalty but can increase the likelihood of return revenue throughout the customer’s vehicle lifetime.
