Point of sale car finance falls

Tue, 29 Jul 2008



Point of sale car finance has plummeted in the last ten years, and is suffering badly from a ‘weak image’ as an uncompetitive financial service .

A study by BlackHorse Finance indicates that point of sale vehicle finance for both used and new cars has slumped. For independent dealers, used car finance penetration fell to 20 per cent between 1997 and 2006.

High street bank finance, such as personal loans, and finance houses (both independent and car manufacturers) have taken much of the market share of vehicle finance .

Professor Peter Cooke was reported as commenting: "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 . 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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