UK car sales teams are focussing on transparent pricing and creating a personalised customer journey to set them up for success this year, according to new research.
Zopa’s 2025 UK car dealerships survey polled 1,000 UK-based car salespeople to reveal the industry’s key challenges and business priorities amidst evolving consumer expectations and the rapid digitisation of sales channels.
As competition intensifies among car dealerships vying for private buyers, new research from digital bank Zopa reveals that transparent pricing (19%), personalised experiences (18%), and robust after-sales support (17%) will be crucial to remain competitive in 2025.
Amid an 8.7% drop in private new car registrations (2025, SMMT), Zopa’s findings confirm that the UK’s rapidly evolving consumer expectations and new technological demands are creating new business challenges for the industry.
Leading concerns cited for 2025 include keeping pace with technological advancements (18%), attracting and retaining customers (18%), and building a strong digital presence (17%).
Importantly, the study shows that 62% of car purchases now involve a mix of online and in-person channels, with personal loans (35%) predicted to dominate financing methods in 2025.
Zopa’s own car finance loan originations reflect this trend, surpassing £300 million in 2024 with 11% year-on-year growth.
But despite the growing consumer reliance on car financing, dealers continue to report ongoing frustrations with their finance providers. Top complaints about UK lenders include their slow credit decisions (38%), complex onboarding process (37%), and delayed payouts (34%).
Zopa’s data shows demand for financing payouts is 56% higher at weekends compared to weekdays, confirming the importance of offering digitally native, rapid financing at the push of a button – including outside traditional business hours.
Despite these hurdles, 80% of car salespeople remain optimistic about their dealership’s performance in 2025. Their main business goals for the year to come focus on improving sustainable practices (32%), enhancing customer experience (31%), and expanding vehicle inventories (28%).
Tim Waterman, chief commercial officer at Zopa Bank, said: “Zopa’s 2025 UK car dealership survey captures a need to meet customers where they are – online, offline and in between.
“In today’s rapidly changing industry, customers are highly price-conscious, often comparing financing options online and on the forecourt in real-time.
“For dealers, securing sales can come down to which lender can respond with transparent pricing, fast decision-making, and seamless payouts—even on weekends.”