Online applications for car finance almost double in the space of one year, with 67% of all applications at KBC/KBC Brussels/CBC now being made online. Interest rate of 0.80% from 8 January to 31 March 2019 on loans for new cars, motorcycles or bicycles.
Monday, January 7, 2019 — · The convenience and time savings involved are persuading more and more customers to go digital.
· 67% of customers apply for their car loan online (via the website, on a PC/tablet or smartphone), an increase of no less than 94% since December 2017:
- 67.5% of KBC/KBC Brussels customers register their application online
- 65.5% of CBC customers likewise choose the digital channel
· 52% of car loan applications at KBC/KBC Brussels are now submitted by smartphone, while 49% of applications at CBC are made in this way. Since March 2018, customers have been able to simulate and apply for a car loan on their smartphone. KBC/KBC Brussels/CBC customers carry out an approximate aggregate of 50 000 car loan simulations per month on their phones.
· The Brussels Motor Show leads to an increase in the number of applications for car loans. In January 2018, for example, there were 82% more applications than in an average month in 2018. The February figure was also 37% higher.
· The number of bicycle loans has also grown spectacularly, with their number soaring by 161% at KBC between the end of 2017 and the end of December 2018.
· From 8 January to 31 March 2019, private individuals – both customers and non-customers – can borrow at an extremely competitive rate of 0.80%* at KBC/CBC and KBC Brussels to finance the purchase of a new car, motorcycle or bicycle.
Motor Show significantly boosts the number of applications for car loans in January and February
The Motor Show generally provides a boost in car finance applications. Compared with the average monthly figure in 2018, the number of applications around the time of the 2018 Motor Show increased by 82% in January and by 37% in February.
The car loan portfolio shows the following trends:
· Average finance term for a new car: 55 months
· Average amount borrowed for a new car: 19 000 euros
(An average term of 55 months and an interest rate of 0.80% means a monthly repayment of 351.92 euros)
· Roughly 80% of the purchase price is financed when buying a new car
· Average age of borrower: 42 years. 35% of borrowers are women, 65% are men
· The number of loans for motorcycles rose by 43% compared with 2017
No fewer than 72% of applications were digital in 2018 (53% in 2017)
· The number of bicycle loans also grew spectacularly: at the end of 2018, KBC recorded an increase of 161% in the number of bicycle finance arrangements compared with 2017
(One-third of these bicycle loans were applied for in April and May)
67% of customers go through the entire car finance process digitally, i.e. from submitting their application to signing the contract.
Non-customers can also go through the digital process on the KBC website (www.kbc.be/retail/en/vehicle).
KBC (i.e. KBC, KBC Brussels, CBC) saw the number of contracts signed digitally increase from 34% at the end of 2017 to 67% at the end of 2018, almost a doubling within one year.
CBC and KBC Brussels customers, in particular, increasingly valued the convenience and simplicity of the digital application process last year:
· KBC: up from 38% to 68% (+79%)
· KBC Brussels: up from 14% to 45% (+221%)
· CBC: up from 9.5% to 65% (+584%)
From 8 January to 31 March 2019, both customers and non-customers can borrow at an extremely competitive Motor Show rate of 0.80%
Each Motor Show boosts car sales and demand for loans. During this year’s Motor Show (and until 31 March 2019), customers and non-customers can borrow at an interest rate of 0.80%* at KBC/CBC and KBC Brussels (for a new car; finance term up to 72 months).
Borrowing from KBC/CBC/KBC Brussels leaves customers free to:
· decide how long they want to borrow for
· choose the car they want without restriction or obligation
· negotiate the purchase price, discounts and their current car's trade-in value
· decide without needing to rush and beat a tight special offer deadline (the present offer runs until at least 31 March 2019)
Customers also increasingly using digital channels to do their insurance business
KBC market research has shown that 15% of Belgians have already taken out non-life insurance online, and 17% have registered a claim online. Applying for and taking out car loans online has been possible at KBC for some time, and is becoming increasingly popular.
61% of KBC car insurance policies are now signed digitally
In addition, around 20% of KBC customers use the services of online experts at KBC Live to take out car insurance by phone or video chat facilities.
Since June 2018, it has been possible to take out car policies digitally at KBC Insurance. More and more people are simulating their car insurance online. KBC ensures that customers can take out a car policy quickly, simply and entirely digitally by answering a limited number of questions. The process is continuously optimised based on user experience and feedback.
Simulation example
Car loan – 15 000 euros – 0.80%
* Representative example: for an instalment loan of 15 000 euros to be repaid over 60 months at a fixed annual percentage rate of charge and a fixed actuarial debit interest rate of 0.80%, you pay 60 monthly instalments of 255.1 euros (or 15 305.75 euros in total). Rate applies from 8 January 2019 for terms up to 72 months, for an instalment loan to finance the purchase of a new car, motor home or motorcycle, or used passenger car no older than three years. The vehicle must be bought by a private individual.
Bicycle loan – 1 500 euro – 0.80%
* Representative example: for an instalment loan of 1 500 euros to be repaid over 24 months at a fixed annual percentage rate of charge and a fixed actuarial debit interest rate of 0.80%, you pay 24 monthly instalments of 63.03 euros (or 1 512.48 euros in total). Rate applies from 8 January 2019 for terms up to 72 months, for an instalment loan to finance the purchase of a new standard or electric bicycle. The bicycle must be bought by a private individual.
