News

Dealer finance demand up

Time 12 years ago

Demand for dealer finance upRECORD numbers of car buyers are using in-house dealer PCP finance products to fund their new cars.

Figures from Motorpoint show demand for its point of sale finance packages has increase by over 50 per cent. 1 in 4 Motorpoint sales is funded by in-house finance.

PCP is leading this boom. Traditional HP finance is up only 8 per cent.

Advert

Motorpoint says this is because PCP gives buyers advantages which are key in a recession. These include:

•    Low deposit
•    Low monthly payments
•    Security of a Minimum Guaranteed Future Value

Motorpoint’s PCP is called Boomerang, which it funds through Blackhorse Motor Finance. It has proven particularly popular in South Wales. Demand there has increased by 110 per cent.

Scotland and the North West saw PCP uptake increase by 100 per cent.

Advert

Paul Winfield, operations director at Motorpoint, was clear about the advantages customers see in PCP. ‘Simple to understand, and even easier to organise, it is the perfect way for the modern customer to finance their next vehicle.

‘Plus, not only does it protect them against the threat of negative equity through its MGFV but it also comes with low deposits and equally low monthly payments.

‘This is music to people’s ears especially during the current credit crunch.’

Personal loan expense

2009 recession prediction

Flexibility to fight recession

Car Dealer Magazine's avatar

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.

More stories...

Advert
Server 190