First-time car shoppers often have misconceptions about buying and financing vehicles. Lenders who want to attract and retain financially savvy customers must provide accessible financial literacy information, experts say.
A first-time millennial or Generation Z car buyer may enter a dealership with some knowledge of family members' loan or lease terms, a vague notion of what a service contract is and a piece of paper on which they have calculated how much from each paycheck they can spend on monthly vehicle payments.
"It's a huge hole, and ... regardless of age, customers feel unsettled when they go into the F&I box," Andrea Brimmer, chief marketing officer for Ally Financial, told Automotive News. "They don't really fully understand rates, the difference between rates versus terms."