Penetration of car finance from dealerships low

Fri, 01 Aug 2008



Following on from car finance reports by Blackhorse Finance earlier this week that indicated point of sale vehicle finance for both used and new cars has slumped in the last ten years, expert opinion confirms the changing nature of the market.

According to motor finance experts, Point of Sale car finance now suffers from a weak image in the eye of the general public, and is generally regarded as not being a competitive financial services product.

Professor Peter Cooke of the University of Birmingham, reportedly commented: "Franchised and non-franchised dealers may run the risk of losing car sales, particularly in a period of tight credit, if they do not promote PoS finance to private car buyers."

He reportedly continued: " Dealers have lost a degree of independence. There is a risk finance may increasingly come under the direct control of manufacturers’ finance houses with their objective of selling their own cars, and banks and building societies where the agenda is lending finance rather than tailoring a loan to satisfy a would-be car buyer’s exact requirements."
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