Car dealers are beginning to take a greater level of control over their car finance operations, according to recent reports.

Profit margins in the car dealing industry are under serious pressure, making dealers search for any way in which to maximise profit. Outsourcing vehicle finance to third parties means a direct dip in profit for dealers, so many are taking matters back into their own hands.

For insurance, a Swindon-based car dealer called Fish Brothers, with 12 franchises in the area, have set up a new division called FB Contracts. They have partnered up with the finance firm to offer inhouse car finance plans.

The sales manager of FB Contracts, Simon Bradbury, reportedly commented: We realised the opportunity was there. If brokers could do it by themselves what was stopping us from setting up our own finance arm and acting as a broker directly to our customers? A key advantage to dealers entering this market is the resources they have already built up.