Auto financing is going digital, and it's a good thing for everyone

Covid-19 impacted virtually every industry around the world, and the car finance industry is no exception. Though demand for cars has remained strong, global supply chain issues have meant car sales have dropped more than 15% over the past 12 months.

These global supply chain issues have led to a shortage in the availability of new cars and a surge in the price of used cars. Used car prices are reportedly 36% higher than pre-pandemic, and these prices aren’t predicted to return to normal until mid-2022.

It’s also led to dramatic changes to the way people buy, finance and insure cars. With better availability of data and technological advancements, experiences across the internet have become more personalised. But car finance has been left behind, particularly in Australia, a market that has lagged compared to places like the UK and the US.

Forced adoption

Covid-19 was the catalyst that forced many industries to move online, a switch that has benefited new players poised to provide online and personalised experiences.

One such fintech, Driva, is using proprietary loan matching technology to give customers a fully personalised lending experience with a digitised and streamlined online borrowing journey.

Businesses like Driva are leading the charge in the rapid move to online car buying, and helping define what buying a car looks like in the digital age.

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Source: Auto financing is going digital, and it’s a good thing for everyone – SmartCompany