Fewer than one in three American consumers – 30% – said in asurvey sponsored by Lending Tree they comparison-shopped for major loans such asauto or mortgage loans.
|On the other hand, 92% told the firm's poll takers they havecomparison-shopped for other items online before purchasing themoffline.
|“It's an interesting phenomenon,” Lending Tree's consumersavings expert, Andrea Woroch, said. “Consumers are generally verysavvy with their shopping behavior when it comes to day-to-daypurchases and material goods. But, once it comes to a majorfinancial investment, we see a collapse of the normally rationalpattern of behavior and mentality for saving.”
|She continued, “Consumers sometimes may be too focused on priceand fail to consider the lifetime cost of interest which is reallywhere banks and lenders make their money. Over a five-year autoloan, or 30-year mortgage, a 1% difference between interest ratescan easily translate to thousands of dollars.”
|The Charlotte, N.C.-based online lending firm, which has partnered with credit unions in the past, estimated theaverage consumer who buys a home could save roughly $17,000 overthe life of a loan if he or she compared mortgage rates and termsbefore agreeing to sign.
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