Dealerships still dominate - but must adapt to shifting buyer expectations, report shows

New research* from Carmoola, the direct-to-consumer car finance lender, reveals a major shift in how UK consumers buy and finance used cars, with younger buyers in particular reshaping expectations around trust, transparency and digital convenience.

The report, based on a nationally representative survey of 2,000 drivers, shows that while dealerships remain the preferred way to buy a used car (64%), today’s buyers expect a more streamlined, digitally supported experience, and many now want to secure their budget before setting foot on a forecourt.

Key findings for dealerships

• Finance is moving to the start of the journey
  38% of buyers arrange finance before they begin searching for a car, while another 34% do so during the research phase. This shift is particularly pronounced among 18-34-year-olds.
  
  
• Buyers research for nearly a month
  Consumers spend an average of 3.84 weeks researching before purchase, with only 10% buying within a week. Dealers who provide clear information online are more likely to convert during this window.
  
  
• Trust signals matter
  The top factors that increase confidence in a dealership are:
  • free warranties (27%)
  • customer reviews (27%)
  • greater transparency on pricing and finance (25%)
  • free vehicle history checks (22%)
  • better after-sales support (19%)
    
    
• Finance knowledge gaps persist
  44% of consumers say they don’t fully understand APR, rising to over half of younger buyers.
  
  
• Flexibility is now expected
  70% of buyers say flexible finance options are important, and one in five specifically check for early repayment flexibility or low deposit options.
  
  

What this means for dealerships

The report highlights a clear opportunity for dealerships to strengthen sales performance by offering simpler finance journeys that build confidence early.

Angus Reid, head of partnerships at Carmoola, said:

“What really stands out from this research is the shift towards customers wanting to understand their budget before they’ve even started looking at cars. That’s a big change, and a big opportunity for dealers.

“When a customer arrives with finance already sorted, the whole experience becomes smoother. They’re more confident, the conversation stays focused on the vehicle, and the sale moves faster.”

He added:

“Dealers don’t need to be finance experts to deliver this. They just need the right partner in the background. That frees them up to do what they do best: source the right stock, provide reassurance, and offer a great customer experience.”

Younger buyers are reshaping expectations

The report finds that younger drivers are far more likely to explore online buying options (29% vs 15% overall) and are the most open to arranging finance digitally, yet also the least confident about finance terminology.

Reid commented:

“Younger buyers expect the entire journey to be clearer and faster. They want digital tools, simple explanations and the ability to check affordability without pressure. Dealers who can meet those expectations will win repeat business from the next generation of car buyers.”

A new era of partnership

The research suggests a growing role for finance partners that can simplify affordability checks, remove jargon and help buyers feel informed long before they visit a dealership.

Reid concluded:

“Dealerships don’t need to take on the full burden of finance. With the right partner behind them, they can offer customers clarity and confidence from the start, and that ultimately drives stronger, faster and more trusting relationships.”

The full report, Understanding today’s used car buyer, is available below: 

Methodology

*The research was commissioned by Carmoola and conducted by Censuswide, among a sample of 2,001 nationally representative respondents aged 18+. The data was collected between 22.10.2025 - 27.10.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.