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.
