DIRECT lenders are looking to up their game with PCPs and HPs during the second half of 2011.

That’s the view according to the FLA, which has prompted the boss of Alphera Financial Services to issue advice to dealers and brokers, helping them to continue to nurture and grow POS finance sales and avoid losing out as the competition heats up.

‘First and foremost, dealers must advertise finance packages effectively, ensuring their offer is competitive and attractive, giving customers the choice of different bundles and buying options,’ says Spencer Halil, director of Alphera.

‘I would advise dealers to work on their unique product offering – customers like to feel they are getting a personalised deal and this is the competitive edge dealers have over direct lenders. Dealers can build direct and personal relationships with their customers in order to offer bespoke finance packages, not to mention the ability to build confidence in buyers by dealing directly with them and their individual needs.

‘As long as dealers are proactive… I don’t see why the successes already seen with POS this year shouldn’t continue’

‘This is also the perfect time to make sure that all types of customer interaction is delivered to a high standard,’ says Halil. ‘Retention will be critical towards the end of this year, so it’s important that dealers focus on customer retention management, including all contact over the phone, face-to-face or via email.

‘Part of ensuring customer service is of a good standard is to make sure customers are treated in a compliant and fair fashion. By adopting an integrity based customer approach, customers are put at the centre of the process, boosting their confidence and trust in dealerships as the place they can rely on to purchase a finance deal.

‘Whilst concerns that competition will become tougher towards the end of this year are valid, I don’t think any of us expected such a rise of POS in 2011, and I am confident that POS finance can continue to grow for the remainder of this year.

‘As long as dealers are proactive and have a robust sales process in place, based around individual customer needs, I don’t see why the successes already seen with POS this year shouldn’t continue.

‘I would advise all dealers to start speaking with their finance providers now to find out what support and advice (beyond competitive deals) they can provide, in order to prepare for competition and to stay ahead of the curve,’ he added.