As anticipated over the past few months, many banks have become much more restrictive in their lending as they anticipate heavier losses from higher risk loans.

Dealers are now much better placed to offer consumers a competitive deal and “Ultimate Plus”, a PCP product from Black Horse, is one such way that customers can be offered an affordable way to buy a new car.

With less than 10% of independent finance house business being PCP agreements, there is a huge potential to grow the business written, while giving dealers an opportunity to keep in touch with their customers throughout the agreement and increase the number of sales in the future.

By offering PCP to customers, dealers not only ensure that they retain control of the sale, but can also build in a profit margin while maintaining a supply of quality, well-maintained used stock.

Fixed, affordable repayments and a competitive GFV make Ultimate Plus much more attractive and will encourage customers to return to the original dealer every time they want a new car.

Some of the main benefits of PCP include:

  • Higher guaranteed minimum future values
  • Payment led – dealers are not always competing against low APR loans
  • Direct lenders don’t offer anything like this, so they can’t compete
  • Quick and easy to quote using the Black Horse online proposals system, eQuips
  • Shorter fixed-term agreements increase customer retention and repeat custom
  • Shorter buying cycles mean more sales and more income in the future.

    One of the big attractions of a PCP agreement is that we can help customers budget accurately and, with increased guaranteed future values on all vehicles, they can defer more and pay less every month.

    In addition, customers choose the annual mileage to suit their lifestyle. So, all in all, it’s flexible and affordable.