Dealers’ role in future-proofing the finance business model

The role of the finance provider is to streamline the relationship between the dealer and their customer in a changing legislative landscape, award-winning independent motor finance provider Alphera Financial Services’ new director Spencer Halil will tell delegates at this year’s AM F&I Compliance Conference.

After taking back the reigns of the company just four months prior to the event, which takes on November 10, Halil (pictured) will share best practice and talk about the innovation and collaboration required to continue to grow in the evolving finance marketplace.

He said: “There has been a massive legislative change in recent years which has put the consumer even more firmly at the heart of the buying process.

“Dealers have had to respond by changing the way in which they communicate and operate.

“The role of the lender – independent or captive – among all of this is to provide the tools, processes and products so that the consumer receives the most appropriate solution for their situation.

“As a provider of independent finance – but with the backing of a manufacturer in our parent company BMW - we are in a unique position to understand all sides of the transaction.

“Dealers and lenders need to be able to engage with the consumer through a variety of channels and in a way that shows joined-up thinking and a flexible, transparent approach to finance.

“Independent and captive finance providers must work together in partnership to give dealers and consumers the choice which ensures everyone is treated fairly.”

Alphera comes to the conference having celebrated almost a decade in the UK market, a succession of year-on-year growth figures and a refreshed management team at the helm.

Its business model, developed to meet the requirements of the FCA, currently includes no customer fees, apart from a nominal option-to-purchase payment and commission is paid at a capped rate, regardless of the product, term or age of the vehicle.

Alphera has also banked two prestigious awards at the Motor Finance Europe Awards, where it was named Independent Finance Provider of the Year and at the Credit Today Awards where it won Finance Provider of the Year.

Halil said: “We have a real opportunity now as a management team to take an already hugely successful business to the next level, continuing to support our dealer and broker partners to achieve even greater success.”

The session will also explore how dealers can work more effectively with their lender partners to provide the financial solutions demanded by consumers.

He said: “It is important that the industry focuses on delivering the right financial products in an easy to understand way, through the right channels, to consumers that can afford the credit and are empowered to make the right decision for their personal situation.

“With appropriate qualification, experienced sales managers and a well-managed approach to residual values in line with market conditions, the customer will be in a good position at the end of their agreement.”