According to figures just out dealer finance is being taken by 21% fewer customers on new cars than this time last year. However closer analysis reveals that with far fewer new cars being sold the actual percentage compared to sales is up year on year.
In 2007 47% of privately bought new cars were funded by the dealers, 48% in 2008 and 52% so far this year. It has become vitally important for dealers to maximise profitability in the f&I section of their business and this shows that the enthusiastic marketing may be paying off. The headlines also don’t take into account the far greater number of potential customers refused finance in the credit crunch. The bottom line is for liquidity in the market it is so important for dealers to be able to keep offering competitive finance packages.