Report highlights Europe’s changing car finance journey

Trust, transparency and clear affordability information have emerged as the biggest factors influencing vehicle finance decisions across Europe, according to new research from automotive retail technology specialist Codeweavers.

Its UK vs European Car Buyer Trends and Finance Behaviour 2026 report, based on a survey of 5,000 consumers across the UK, Germany, France, Spain and Italy, highlights significant differences in how motorists research, finance and purchase vehicles, while identifying opportunities for lenders, manufacturers and dealers to improve conversion through better digital experiences and clearer finance journeys.

The research found that while the UK leads Europe in digital engagement and consumer confidence around vehicle finance, these strengths do not automatically translate into higher finance conversion. Instead, buyers increasingly expect transparent pricing, seamless online-to-dealer experiences and finance information that is easy to understand before making a commitment.

Although 41.3% of UK respondents used finance to purchase their most recent vehicle, more than two-thirds (67.6%) said they would consider using finance in the future, suggesting there remains considerable scope for lenders and retailers to convert interested buyers into customers. Meanwhile, just over half (51.5%) purchased their last vehicle outright, reinforcing that ownership remains an important consideration for many consumers.

The report found UK consumers are among Europe’s most digitally engaged vehicle buyers. Nearly 60% visited a dealership during their research, but almost half also used dealer websites, while more than four in ten researched manufacturer websites before making a purchase. Comparison sites, online marketplaces and social media also played an important role, demonstrating that consumers increasingly expect a connected buying journey rather than choosing between online and physical channels.

When asked what would most improve the purchasing process, buyers prioritised visibility of monthly payments (50.8%), consistent pricing across channels (44.8%) and seamless movement between online and dealership interactions (44.1%). However, the research also revealed significant friction, with almost two in five respondents (38.8%) saying they felt overwhelmed by too many options, while 28.4% cited unclear information about the total cost of ownership and 21.6% struggled to compare finance products.

Despite recording the highest levels of finance confidence among the five countries surveyed, UK consumers also placed the greatest emphasis on trust. More than 94% said the reputation of the dealer or finance provider was important, while 89% highlighted transparency and clarity of finance terms as key decision factors. Administrative complexity also continues to create frustration, with almost one-third of respondents citing excessive paperwork as a barrier to completing finance applications.

The findings suggest consumers are comfortable using digital tools to research affordability but still value human interaction at key decision points. More than 60% of UK respondents said they would be happy arranging finance entirely online, the highest proportion of any market surveyed, while two-thirds said they would use a platform combining vehicle search, purchasing and finance comparison. However, only 15.1% wanted to complete the final finance agreement entirely online, demonstrating that many buyers still seek reassurance before committing.

Consumers also highlighted the features they value most in digital finance journeys. Monthly payment calculators, transparent breakdowns of costs and interest rates, faster approval updates and easy comparison of finance offers all ranked highly, suggesting that improving affordability visibility earlier in the customer journey could help retailers increase conversion.

Across Europe, the research found that consumer behaviour varies significantly by market. The UK and Germany demonstrated the highest levels of digital maturity and financial confidence, while Spain and Italy showed greater use of vehicle finance but lower confidence in understanding finance products. France emerged as the most traditional market, with lower digital engagement and a stronger preference for purchasing vehicles through dealerships.

One consistent finding across all five countries was the importance of transparency. Consumers ranked clear finance terms, visible pricing and trusted providers above product features when choosing finance, reinforcing the report’s conclusion that improving clarity throughout the finance journey is likely to have a greater impact on conversion than simply introducing additional digital functionality.

“Consumers don’t separate the finance experience from the retail experience. If pricing, finance terms or affordability feel unclear, trust is affected. Overall, transparency is a core part of customer experience.”

The report concludes that while digital retailing continues to evolve across Europe, the winning strategies will be those that combine online convenience with trusted human support, enabling customers to research, compare and understand finance options before completing their purchase with confidence.