What Buyers Don't Know Will Hurt Them
Despite higher awareness of refinancing among recent car buyers and intenders (75%) versus the average American (47%) many don't understand the details. While there is some awareness of refinancing, they feel they need to be able to save enough to make the effort of refinancing worthwhile. The general idea among buyers that the savings opportunity is low more often than not is causing them to leave money on the table. More than one-third of all buyers (37%) say it's not worth researching financing or leasing terms, because they assume those rates are usually non-negotiable.
The study also found that buyers are risk-averse in the context of the current economic climate. Though four in ten think that auto loans might cause the next financial crisis, buyers appear to lean safe when it comes to their loans. Nearly half of both buyers and intenders (49%) say they plan to pay off their loan early, and most (62%) say they've been much more cautious since the last financial crisis. Considering the majority of buyers and intenders (73%) say it only makes sense to refinance when rates go down, there is a very real possibility that they are spending more than they should.
To help demystify auto refinancing, LendingClub is committed to providing consumers with the resources they need to make an informed decision when buying a car. For more information about auto refinancing, please visit: www.lendingclub.com/loans/auto-refinancing.
This survey was conducted online within the United States by The Harris Poll on behalf of LendingClub from May 1-15, 2019 via a self-administered online questionnaire. Qualified respondents either purchased, financed, or leased a vehicle in the past 12 months ("buyers," n=1,891) or were at least somewhat likely to purchase, finance, or lease a vehicle in the next 12 months ("intenders," n=1,110). The raw data has been weighted by several demographic variables where necessary to reflect the composition of the general adult population. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.
LendingClub was founded to transform the banking system to make credit more affordable and investing more rewarding. Today, LendingClub's online credit marketplace connects borrowers and investors to deliver more efficient and affordable access to credit. Through its technology platform, LendingClub is able to create cost efficiencies, and passes those savings on to borrowers in the form of lower rates and to investors in the form of potentially higher risk-adjusted returns. LendingClub is based in San Francisco, California. More information is available at https://www.lendingclub.com.
About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com