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Car buyers researching financing options online

Mar 23, 2011 Brian Bradley

Consumers are breaking new ground with how they are obtaining loans. A new survey from Kelley Blue Book reveals that 64 percent of car buyers are now researching loans through online outlets. Kelley Blue Book's Market Intelligence survey also found that 66 percent of new car shoppers anticipate financing some or all of the their next purchase. Within that segment, 35 percent of respondents will select a 60-month loan, while 23 percent will seek a 48-month loan. Only 9 percent said they will pursue a 24-month loan. Conversely, 34 percent of car shoppers said they would pay for their next vehicle up front in cash. "In these tough economic times, we're finding that the majority of new-car buyers plan to finance at least some of their next vehicle purchase. Because of relatively lower monthly payments, five years is the most appealing loan term," said Jack R. Nerad, executive market analyst for Kelley Blue Book, said in a statement. Nearly half (48 percent) of car shoppers plan to use cash from their trade-ins as a down payment on a new vehicle, while just 6 percent do not plan on a submitting a down payment.