Automo&veFinanceInsight-Snapshot

TheFactsBehindTheCustomerJourney

5thEdi&on-Australia2016

Background

TheAutomo*veFinanceInsightisanin-

depthanalysisofhowconsumersfinance

thepurchaseofvehiclesintheAustralian

market.

Theinsightsprovidedarecri*calto

understandingconsumerbehaviour,

trendsandaAtudeswhenchoosing

betweenautomo*vefinanceproducts&

providers.

Theafiisasyndicatedstudypublishedby

ACAResearch,specialistsinautomo*ve

andfinancialservicesresearchfor24

years.

Theinforma*on,models,concepts,

insightsandproprietaryterminology

(includingthenameAutomo*veFinance

Insight)remainthepropertyofACA

Research.

Furtherreproduc*onofthisreport,

beyondinternalclientcompany

colleagues,isforbiddenwithoutprior

approvalfromACAResearch.

Copyright

2

Get the full 143 page Automotive Finance Insight report

Filled with actionable insights into the Australian automotive customer experience

http://www.acaresearch.com.au/afi-register-australian-automotive-finance-insight-2016

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The Customer Journey

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Filled with actionable insights into the Australian automotive customer experience

4

64%55%

47%39%34%30%

19%

20%

16%27%

21%23%25%

17%

7%

12%14%

18%18%19%

20%

9%17%12%

22%26%26%

44%

Makingfinalchoiceofvehicle

Makingfinalchoiceoffinance

lender

Testdrivingselectedvehicles

Consideringfinancelenders

Consideringtheneedforfinance

Considering/cullingtheshortlist

Developingashoppinglistofvehiclebrandsandmodels

6weeksormore

4-5weeksbefore

2-3weeksbefore

Upto1weekbefore

CustomerJourney:Timeline

Morethanonethirdofconsumersarenotconsideringfinanceun*lthelastweek,withmorethanhalfmakingthefinalchoiceoflenderatthis*me.

Base:Allrespondentswhofinancedtheirvehicle2015n=810;2016n=797D5.Howlongpriortopurchasingyourvehicledidyoucommencethefollowingac*vi*es?

HowLongPriorToVehiclePurchaseDidYouConductTheFollowingAc&vi&es?

(9%)(17%)

(31%)(36%)

(36%)(52%)

(61%)

(2015%)

5

Yes51%

No49%

CustomerJourney:Timeline

DidYouMakeAFinalDecisionRegardingLenderBeforeVisi&ngAnyDealerships?

Consequently,oneintwoconsumersclaimtheymadethefinaldecisionregardingwhichlendertheywouldusebeforevisi*nganydealerships,withthemajorbankssecuringmostofthesecustomers.

Base:Allrespondentswhofinancedtheirvehicle2016n=785(excludesrespondentswhodidnotvisitadealership)F2.Didyoumakeafinaldecisionregardingwhichlenderyouwouldusebeforevisi*nganydealerships?Note:Onlyshowingbrandswithbasesizen>20

ByCurrentLender

15%

15%

8%

7%

6%

5%

5%

4%

CBA

ANZ

NAB

Westpac

StGeorgeBank

Esanda

MacquarieBank

ToyotaFinancialServices

6

CustomerJourney:TimeSpentResearchingOnline

HoursSpentOnlineResearchingVehiclesBeforePurchasingVehicle

Theaverageconsumerisspending*meonlinetoresearchvehiclesandfinance,underliningtheneedforeffec*vewebsiteop*misa*on,SEOanddigitaladver*singcampaigns.

22%

13%

21%

14%

11%

7%

13%

<3hours

3-<6hours

6-<9hours

9-<12hours

12-<24hours

24-<36hours

36+hours

Base:Allrespondentswhofinancedtheirvehicle2016n=797D7.Intotal,howlongdoyouspendresearchingvehiclesonlinebeforepurchasingyourvehicle?F7.Intotal,howlongdoyouspendresearchingfinanceonlinebeforepurchasing?*Trimmedaverage=central90%ofresponses(topandbomom5%removed)

Mean:12.3HoursMedian:6Hours

HoursSpentOnlineResearchingFinanceBeforePurchasingVehicle

19%

8%

20%

17%

21%

3%

4%

4%

4%

None

<1hour

1-<2hours

2-<3hours

3-<6hours

6-<9hours

9-<12hours

12-<24hours

24+hours

Mean:2.7HoursMedian:2hours

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CustomerJourney:Informa&onSources

Base:Allrespondents;Financed:2013n=815,2015n=810;2016n=797D6.Fromwhichsourcesdidyouobtaininforma*onwhensearchingforyourvehicle?-Notaskedinpreviousyears;*‘automo*vemagazines’priorto2016waspreviously‘automagazinear*cles’and‘automagazineadver*sing’.

Informa&onSourcesUsedWhenSearchingForVehicles

Whensearchingforavehicle,consumersmostopenlookforinforma*ononlineusingavarietyofwebsitesincludingmanufacturer,dealer,carreviewandcarclassifiedwebsites.Onlineremainsthegreatestopportunityforfinancierstointerceptthecustomerbeforetheyreachthedealership.

39%

38%

34%

26%

13%

39%

30%

10%

10%

9%

8%

7%

4%

2%

Carmanufacturerwebsites

Cardealerwebsites

Carreviewwebsites

Carclassifiedwebsites

Autofinancewebsites

Salespersonatdealership

Wordofmouth

Automo*vemagazines

TV

Motoringassocia*onmagazines

Newspapers

Socialmedia

Visi*ngautomo*veshows

Radioadver*sing

Net:Onlineviawebsites79%

Net:Recommenda&on58%

Net:Othermedia36%

Averagenumberofsourcesused:

2.7

8

Base:Allrespondents;Financed:2016n=797G6.Didyoudealwiththefinancelenderdirectlyordidyouuseabrokertofacilitatethefinanceandapplica*onprocess?

FinanceChannel

FinanceChannelUsedByCustomerToSecureFinance

Directwithmainbank28%

Directwithanotherbankorlender(notMFI)

22%

Throughdealer34%

Throughbroker16%

Strongcompe**onexistsaslenderscompeteforcustomersdirectlyandthroughthedealershipandbrokerchannels.

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UseOfPre-ApprovedFinance

FinancePre-ApprovedPriorToFinalisingVehicleChoice

Thelevelofpre-approvedfinancecon*nuestoincreaseanditisthereforeessen*althatlenderprocessesassociatedwithpre-approvalaresimpleandefficient.

Base:Allrespondents;Financed:2011n=802,2013n=815,2015n=810;2016n=797E2.Didyougetyourfinancepre-approvedpriortofinalisingyourchoiceofvehicle?

46%37%35%

201620152013

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CompletedOnlineApplica&on

Interes*ngly,thepropor*onofonlineapplica*onsisnotincreasing.

Baseincludesonlythoseundertakingtheac*vity‘comple*ngtheapplica*onform’,2011n=698,2013n=680,2015n=662,2016n=655F5.Pleaseindicatewhichmethodsyouusedforeachofthefollowingac*vi*eswhenlookingforautomo*vefinanceforyourcurrentvehicle?(Chartindicatesthosewhocompletedthefinanceapplica*ononlineviawebsitesandmobileapp,notincludingemails)

18%20%21%

201620152013

%CompletedTheApplica&onOnline

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Finance Lenders

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Filled with actionable insights into the Australian automotive customer experience

12

DirectWithMainBank(MFI)

Base:Financed2016:Directwithmainbankn=224,throughdealern=270,throughbrokern=125,directwithanotherlendern=178G4.Whichlendercurrentlyprovidesyourvehiclefinance?

Top10LendersByFinanceChannel

30%

16%

14%

12%

6%

5%

4%

3%

1%

1%

1%

CBA

ANZ

NAB

Westpac

BankWest

Suncorp

StGeorgeBank

CreditUnionAustralia

BendigoBank

People'sChoiceCreditUnion

BankofQueensland

ThroughDealer

17%

17%

10%

9%

8%

7%

7%

6%

3%

3%

3%

StGeorgeBank

ToyotaFinancialServices

NissanFinance

Esanda

ANZ

BMWFinancialServicesVolkswagenFinance

MacquarieBank

CapitalFinance

CBA

FordCredit

ThroughBroker

17%

14%

13%

10%

10%

6%

5%

4%

3%

2%

ANZ

MacquarieBank

Esanda

StGeorgeBank

CBA

Westpac

BankWest

BankofQueensland

NAB

GEMoney

DirectWithAnotherLender(NotMFI)

13%

11%

8%

7%

6%

5%

4%

3%

3%

3%

3%

CBA

ANZ

Westpac

NAB

Esanda

MacquarieBank

StGeorgeBank

GEMoney

RACV

Suncorp

CreditUnionAustralia

13

ToyotaFinancialServiceshasstrengtheneditsNPSscoresince2013andsurpassedCBAthisyear.

NetPromoterScore(NPS)

20%

25%

23%

22%

25%

33%

32%

48%

36%

37%

41%

30%

35%

52%

55%

50%

44%

52%

23%

46%

44%

37%

50%

40%

25%

22%

25%

23%

16%

30%

18%

19%

22%

ToyotaFinancialServices

BankWest

CBA

Westpac

BMWFinancialServices

NAB

Esanda

Macquarie

ANZ

StGeorge

NissanFinance

Detractors(0-6) Ambivalents(7-8) Promotors(9-10)

LenderPerformance:NetPromoterScore

Base:Allrespondents;Financed:2013n=815,2015n=810,,2016n=797;Notreportedforbasesizelowerthann=20L9Ifafriendorrela*veweretoask,howlikelywouldyoubetorecommendtheydobusinesswithyourcurrentlender?

2016 2013

30 -12 -17

15 -21 7

2 -9 -1

0 -17 -33

0 -33 -14

-10 8 -15

-16 -19 -37

-18 -33 -23

-18 -31 -18

-18 -29 -40

-19 -8 -26

2015

LikelihoodToRecommend

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FORMOREINFORMATIONPLEASECONTACT:JamesOrganManagingDirectorACAResearchTel:+61299273333Email:jorgan@acaresearch.com.auLevel6,107MountStreetNorthSydneyNSW2060

ACAResearch(theauthors)andanyotherpersoninvolvedintheprepara*onofthisreportmakenorepresenta*onsorwarran*esastotheaccuracyorcompletenessofthedata,views,conclusions,comparisonsorinsightscontainedinthisreport.ACAResearchexpresslydisclaimallresponsibilityandallliability(includingliabilityfornegligence)foranyloss,damage,expenseorcosthowsoeverarisinginrespectofthisreport,includinganyconsequencesarisingfromitsusebyanypersonac*nguponthewholeorpartofthisreport.Allrightsreserved.Nopartofthispublica*onmaybereproduced,published,adapted,communicatedorstoredinaretrievalsystemwithoutthepermissionofACAResearch.

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