By Tony Willard
Automotive retail lenders are urging dealers to retain some control in September’s 63-plate market while making the most of buyers being driven into showrooms by manufacturers’ national campaigns.
James Broadhead, Close Motor Finance managing director, said dealers could be locked in with carmakers’ structured finance products.
James Broadhead, Close Motor Finance managing director |
“Control could be taken away from dealers to market vehicles individually,” he said. “Where manufacturer offers don’t cover certain models, dealers should work with specialist lenders to provide finance packages tailored to their needs, and those of customers. Lenders must be able to offer a complementary range of terms to preserve dealers’ income.”
Andy Gruber, Alphera Financial Services UK director, expects growth in September’s new and used car markets. “Dealers will probably feel locked in with carmakers’ structured finance products for new vehicles,” he said.
“There is, though, a strong opportunity for them, with specialist lenders’ finance products, for used vehicles.”
Gruber said the right finance products could attract customers scared off by more traditional and less flexible finance options.
“The right PCP will make the car of choice more affordable for customers,” he said.
Broker Mann Island has launched Campaign 63. Director John Hughes said 45 development managers would, by the end of September, each deliver 63 sessions to advise dealers on coaching, marketing and phone call techniques.
Hughes said: “Many September finance sales will be based on price. It has its place, but we aim to take finance to a new level, delivering a service experience that creates sales and long-term dealer loyalty.”
ABC123 - 05/09/2013 12:53
The reason to lock in with a manufacturer (MF) is the additional support they can apply once the customer comes around to renew. AND you'll get your customer back again. Additionally - they can can identify and market these customers ahead of renewal point and will support with additional marketing spend if required to change customer early. The white labels won't have that spend, and generally their non supported GMFV's will be lower, and the interest rates higher in most cases than MF supported PCP. Also, a few white label finance companies have associations with manufacturers / banks, and you will be lucky to see that customer again - as in a lot of cases they are re marketed to brand / bank products at point of renewal. As for used sales, there are loads of providers outside of MF finance, but alot of MF used car finance offers can be tied into volume bonus targets incorporated into new VB targets - so there is still a good income source. In summary - nothing wrong with being "locked in" with MF finance products.