TotallyMoney moves into car finance

TotallyMoney has announced the launch of TotallySure for car finance, putting customers in the driving seat when applying, with pre-approval, guaranteed rates, loan amounts and terms:

The car finance market has grown by 9% year on year to £40.7bn, powering the purchases of 2.2m new and used vehicles with an average borrowing of £18,377
7% of applications are refused, and 6.8 million adults (13%) avoided applying for a financial product or service because they thought they would not be eligible
Regulation requires lenders to only provide 51% of applications with the Representative APR (advertised) offer — meaning customers could be handed a worse deal after they apply
Just one in three people (36%) agreed that most financial firms are honest and transparent

TotallySure improves transparency and drives better customer outcomes, by helping them avoid rejection and guaranteeing that they get exactly what they apply for. This industry-first feature also benefits lenders by matching them with more suitable borrowers, while helping to reduce costs, and improve trust and brand loyalty.

TotallySure — driving better customer outcomes

Over the past decade, the value of the car finance industry has more than doubled, and is now worth £40.7bn per year. More than two million car purchases were financed in the past 12 months, with an average loan value of £18,377.

When a customer applies for car finance, lenders will perform a credit check to assess their affordability, and ability to repay the loan. However, customers usually won’t know if they’ll be accepted before they apply, and 7% are being declined. In addition, representative APRs mean lenders are only obliged to give 51% of customers the advertised offer.

TotallySure offers pre-approval, helping to put an end to rejected applications and credit file implications. It also guarantees the APR, loan amount and term, so customers know that what they see is exactly what they’ll get.

The launch has come as TotallyMoney seeks to help the car finance industry rebuild trust with its customers following the recent FCA probe which could cost lenders banks up to £16bn. It found discretionary commission arrangements meant some brokers were being incentivised to sell loans at higher costs, with customers paying considerably more than they should have for their car finance.

Giving the green light to car finance confidence

Following the successful launch of TotallySure for credit cards and loans, the market-leading feature is now being introduced to car finance, and provides applicants with pre-approval, while guaranteeing rates, loans amount and terms.

Pre-approval: Car finance applications often require a hard credit search — and too many can negatively impact one’s ability to borrow. With pre-approval, customers will know if they’ll be accepted before they apply, helping to put an end to car finance rejection.
Guaranteed APR: Knowing the APR of the agreement before you apply is key to working out if you’ll be able to afford the repayments. TotallySure puts an end to representative APRs and nasty post-application surprises by guaranteeing the rate and the cost to borrow.
Guaranteed loan amount: Knowing how much you can borrow will be decide which car you buy — which is why TotallySure guarantees the size of your car finance loan.
Guaranteed term: When borrowing, you need to know how long you’ll be making repayments for, so you can plan your long-term financial future — and with TotallySure, customers are guaranteed the exact term of their borrowing.

TotallySure sets a new standard of care, improving transparency, and creating better customer outcomes. It also benefits lenders by driving more eligible customers and reducing the costs of failed applications, while removing uncertainty and improving trust.

Alastair Douglas, CEO of TotallyMoney comments:

“The recent discretionary commission scandal means that in recent years, four in ten customers might have been overcharged for car finance, while a lack of transparency around how lenders choose who to lend to and representative rates could lead to rejected applications, and people being given more expensive loans than they expected.

“TotallySure gives car finance customers the confidence and control they need, with pre-approval, guaranteed rates, loan amounts, and terms, so they can avoid rejection, and map out their finances with confidence.

“We’ll also reward car finance firms who prioritise customer outcomes with TotallySure, by prioritising their ranking on our product tables. This will also help to match them with more suitable borrowers, while reducing costs, and improving trust and brand loyalty.”