Affordability Checks: Supporting Responsible Finance Decisions
Affordability checks are a core part of responsible motor finance. They help ensure finance agreements are realistic, sustainable and suitable for the customer’s circumstances.
For dealers, affordability checks support better acceptance outcomes and reduce the risk of deals falling over later in the journey.
What Is an Affordability Check?
An affordability check assesses whether a customer can reasonably manage the proposed finance agreement alongside their existing financial commitments.
This typically considers:
-
Income and expenditure
-
Credit commitments
-
Deposit and term length
-
Monthly repayment suitability
The aim is to support informed, responsible lending decisions.
Why Affordability Matters for Dealers
When affordability is aligned from the start:
-
Customer confidence improves
-
Acceptance rates are stronger
-
Fewer deals collapse post-approval
-
Complaints and disputes are reduced
Well-structured deals benefit everyone involved.
Setting Realistic Expectations Early
One of the most effective ways to support affordability is early, clear communication.
Providing realistic finance illustrations and aligning vehicle choice with affordability helps prevent disappointment and disengagement later in the process.
Final Thought
Affordability checks aren’t a barrier to sales — they’re a safeguard.
Handled correctly, they support smoother finance journeys and more completed deals.
