In today’s used car market, dealers who fail to make finance a central part of their marketing are missing a major opportunity. While finance penetration in the used sector is improving, it still trails behind new car sales.
Industry data suggest that around 49% of used vehicles are financed, compared to 77% of new car registrations. That gap represents significant headroom for growth, especially for dealers willing to invest in a more flexible, customer-focused approach.
Used car finance has evolved into more than just a means to close a sale. It is now a crucial factor in how customers decide where to make a purchase. A competitive finance rate that brings down the monthly payment will drive more interest online and convert more leads in the showroom.
A strong financial offer will attract buyers and influence their decision on where to purchase. An affordable monthly offer can help boost the overall purchase price. On the other hand, retailers who don’t offer finance risk losing potential customers. Some will walk away from the purchase entirely, while others may delay the decision or take their business elsewhere.
Finance isn’t just about affordability. It’s also about trust. When dealers advertise finance clearly and competitively, customers are more likely to engage. With most buyers researching online before visiting a showroom, the ability to show finance options with transparent rates, eligibility criteria, and total cost breakdowns can make all the difference. Low APR offers or pre-approval tools are far more persuasive than price tags alone. Buyers want to understand how the deal will work for them, and when those answers are easy to find, they are far more likely to take the next step.
Technology has shifted expectations, and buyers don’t want to visit a branch to secure a bank loan or wait days for paperwork. They expect fast decisions and simple processes. This is where dealers can make gains by offering instant soft search checks, mobile-friendly applications and e-sign functionality. Anything short of instant approval can now feel outdated, while dealers who can deliver personalised finance, value trade-ins and complete transactions online will win more business.
Finance should not be treated as a standalone offer. It should be used to strengthen overall marketing campaigns. A payment-led offer can be more effective than a discount, particularly when combined with promotions such as trade-in support or service packages.
Customers tend to focus on monthly affordability rather than overall cost, so showing how finance makes a car more accessible is often more compelling than simply dropping the sticker price. Dealers with access to multiple lenders can also broaden their appeal by supporting a wider range of credit profiles and offering flexible terms that suit a greater number of customers.
While many consumers remain unclear about how dealer-arranged finance works compared to external options, this presents an opportunity rather than a barrier. Dealers can use their marketing channels to inform and reassure. Explaining how different finance products work, what the benefits are and how the customer can save time and money builds confidence. This kind of messaging sets the dealership apart as a trusted source of guidance.
Online enquiries for used cars continue to grow. But it’s not just about generating leads; how quickly dealers respond matters just as much. Buyers expect a reply within an hour, and most won’t wait longer than three. Responding quickly and with a finance offer tailored to the enquiry turns interest into action.
Finance is a driver of marketing effectiveness, lead generation and ultimately sales performance. In a volatile market, where buyers are focused on value and clarity, finance gives dealers a real edge. The dealers who succeed will be those who understand this shift and put finance at the centre of their strategy, from their digital campaigns to the final handshake on the showroom floor or click online.
Alastair Grier is CEO of CarMoney.