Joe Finnerty

Finance paperwork is a massive headache. Where is the digital help?

THE line between vehicles and smartphones is becoming increasingly blurred, as the Internet of Things connects everything around us. And the method of buying or owning these products is aligning, too, as manufacturers offer online options.

But there is one anomaly: finance. Monthly contracts, rather than outright cash, now account for eight out of 10 new cars bought. Personal contract hire (PCH) and leasing is increasingly popular as consumers seek competitive monthly prices with no desire to own the car at the end.

A report on the 2016 market by Contracthireandleasing.com also reveals the most popular term length was two years (59. 2 per cent) with just one in 10 opting for a four-year deal.

It seems we have become so used to refreshing products like phones after just two years that it’s now carrying over into car ownership, too. The idea of buying a vehicle with cash from a dealer is starting to seem old-fashioned.

Despite this, car finance is still stuck in the past, with reams of paperwork, rather than easy digital contracts. According to financial technology company Intelligent Environments, half of car buyers are left scratching their heads due to the complex processes they have to go through to apply for vehicle financing.

Compare that to smartphones, where I recently had to upgrade and could do so without even speaking to a human, instead using website chat services and online form filling.

It’s not for everyone, of course, but it was hassle free. Perhaps this can be the next area where the automotive industry merges with technology to further benefit the consumer.

“Car finance is still stuck in the past, with reams of paperwork rather than easy digital contracts“