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.
‘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.