The body representing car dealers in the UK has issued a warning that dealerships are losing out on a key revenue stream due to not selling car finance products.

The National Franchised Dealers Association (NFDA) reportedly warned that car dealers are missing out on a principal stream of revenue. This is largely down to a preconceived idea that dealer vehicle finance is unpopular with consumers. The NFDA says that this equates to missed sales.

The head of business development at the NFDA, Louise Wallis, reportedly commented: Dealers believe that in-showroom finance is perceived by consumers as expensive. However, this is a false assumption. A recent survey has found that the 24 per cent of consumers who need to arrange finance to complete purchase of a vehicle will choose to do it at the dealership.

Many car dealers and car manufacturer franchises do offer car finance deals, but the general consensus in recent years is that personal loans are a cheaper way of financing a vehicle .