Startline Motor Finance has seen franchised car dealerships achieve 50% penetration with a new “flexible prime” PCP product launched only last month.

The product, designed to be offered by dealers alongside PCPs from traditional prime lenders and suggested as an alternative source of funding when applicants are declined, offers APRs and general terms similar to those offered by prime lenders rather than resembling a sub-prime product.

Startline’s chief executive Paul Burgess believes that its early success is a clear indicator of consumer appetite for the solution.

He said: “At some of our most important franchise dealer customers, half the business that we have written in the last month is for the PCP which, to us, shows that the product has immediately found quite an important niche in the market.

“In many cases, we are helping dealers to sell cars, and customers to buy them, in a way that would be otherwise unavailable.”

Burgess said that the PCP was designed for customers who have been rejected by prime lenders even thought they are good credit risks because they do not meet requirements based on their work patterns or other socio-economic factors.

He said: “With the PCP, we take a closer look at the circumstances of the person making the finance application, often entering into a dialogue with them and with the dealer.

“The thinking is that if we can gain an understanding of that person’s overall financial position, then we can work to arrive at a solution that meets their needs. It’s a more holistic process.”