Wednesday, November 29, 2006
Does finance add up?
THERE WERE few car retailers represented at this month's Finance & Leasing Association's Motor Finance Convention at the National Motorcycle Museum, Birmingham. It was a point noted by the keynote speaker, Quentin Willson, who acknowledged that a 30-year decline in forecourt finance could not be turned round in a year.
In truth, the lack of retailers mirrored the FLA's own statistics. - 30% don't offer point-of-sale finance for new cars and 43% don't have it on the menu for used cars. It is complicated, expensive and over-regulated is often the reason trumpeted.
The FLA and, indeed, individual members of the Association are stepping-up their activities to reverse the decline in POS finance by providing training and advice. At the convention, the Association launched a consumer website designed to give customers the knowledge they need to make an informed choice about how to finance their car. The aim is to counter stories of forecourt finance being a bad deal by impartially explaining the pros and cons of all forms of financing a car.
Despite finance sometimes making the difference between a dealer being viable or not viable, Louise Wallis from the RMIF probably brought the subject down to basics - "margins need to be improved for the dealers in order to reverse the decline," she said.
Retailers should take a tip from car-makers. Sell the money, not the metal.
DATED: 29.11.06
FEED: AW
In truth, the lack of retailers mirrored the FLA's own statistics. - 30% don't offer point-of-sale finance for new cars and 43% don't have it on the menu for used cars. It is complicated, expensive and over-regulated is often the reason trumpeted.
The FLA and, indeed, individual members of the Association are stepping-up their activities to reverse the decline in POS finance by providing training and advice. At the convention, the Association launched a consumer website designed to give customers the knowledge they need to make an informed choice about how to finance their car. The aim is to counter stories of forecourt finance being a bad deal by impartially explaining the pros and cons of all forms of financing a car.
Despite finance sometimes making the difference between a dealer being viable or not viable, Louise Wallis from the RMIF probably brought the subject down to basics - "margins need to be improved for the dealers in order to reverse the decline," she said.
Retailers should take a tip from car-makers. Sell the money, not the metal.
DATED: 29.11.06
FEED: AW
