More good news (of sorts). We hear that the Finance and Leasing Association confirms that that point of sale dealer finance has been rising for several months.
As pointed out in an article on Talking Motors it appears customers still in the market for cars are no longer being bombarded with cheap credit offers and are still finding it difficult to raise money from the banks.
Car dealers are getting used to selling less cars so it’s vitally important to go all out and make sure they market and sell all the add-ons on the cars that are sold.
Whether this news is in spite of the credit-crunch or because of it, It’s at times like these that being in the trade and seeing the way that businesses need to adapt to keep afloat comes to the fore. With our articles on add-ons and the fact that the car is now just a “vehicle” to generate profits from not only finance but a variety of insurance based products, it will come as no surprise that budgets are now being actively written to include at least £350 per unit sold in extra income from these particular mediums. The flexibility in turning to these traditional customer resistors is testament to the new message given to front line staff who are being trained to sell these products as part of a pack.
They do this by softening a potential customer on the metal price and by quoting a range of insurance based products to sit alongside the fantastic deal given on the car.
The Talking Motors article states “Customers have traditionally been wary of dealer finance deals assuming, sometimes correctly, they are likely to be more expensive than bank loans” which is very true, so there does appear to still be a lot of work to do.
If a dealer wants to stay (or even return to being) profitable, it is more important than ever