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Credit crunch boosts dealers

Time 14 years ago

TIGHTER high street lending prompted by the credit crunch could provide dealers with increased opportunities to sell their own in-house finance products.

 

RAC Warranty says that tighter economic conditions are already prompting better penetration of warranty products and that a similar effect could be seen when it comes to used car finance.

 

Ian Simpson, sales and marketing director, said: ‘Dealers have had a tougher time selling their own finance products in recent years because the high street lenders have provided extremely cheap loans to used car buyers.

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‘However, that is beginning to change. Dealer finance packages are not only looking more attractive from a competitive point of view but the convenience and face to face nature of dealer-based lending could easily gain customers.’

 

Simpson explained that used car dealers were currently rediscovering the benefits of selling a range of financial products to customers as part of the process of selling a used car.

 

He said: ‘These are skills that have been a little neglected by some dealers in recent years but many are rediscovering the profits that are to be made from taking a structured approach to selling the financial products that surround a used car.

 

‘Certainly, although used car sales themselves have fallen, the penetration of warranties and other types of insurance have started to rise. There is every reason to expect that a concerted approach to selling dealer finance could bring similar results.’


 

Dealers who want to find out more about RAC Warranty should call 0208 869 7155.

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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