Will Offering Car Finance Improve Vehicle Sales?
Offering car finance options could be a way to help boost your vehicle sales, as car finance opens up new ways for your customers to get the car they want.
Many dealers offer car finance deals when selling their vehicles, but does this have a positive impact on sales?
Sales Go Up
In the first half of 2016, used and new consumer car finance dealership sales went up 11% in volume and 16% by value from 2015 according to the Finance and Leasing Association.
Head of Research and Chief Economist at the FLA, Geraldine Kilkelly, said: “The POS consumer car finance market reported a strong performance in the first half of 2016, with double-digit growth in both the new and used car finance markets. Despite modest contractions in private new car registrations in recent months, FLA members have continued to report growth in new business volumes.”
Benefits Of Offering Car Finance
As a motor trader you are likely to come across many customers visiting your place of business that have their eyes turned by a car that is just outside their price range, but if you offer car finance you have the ability to make that car affordable to them, which would not only help you sell a car you otherwise might not, but also potentially create a higher value sale. More and more people are looking at different ways to finance a new car, and Hire Purchase, Personal Loans, and car loans are becoming ever popular. By offering car finance you could make your business more attractive.
For a dealer to offer their own vehicle finance they will need to be FCA authorised, obtain a consumer credit licence and will then need to set up relationships directly with lenders or a finance broker. It’s also beneficial to have a suitable computer system in place to help process the enquiries correctly and efficiently.