Wednesday, August 08, 2007
Finance House goes "direct" to boost dealers' F&I
Following a pilot earlier this year, Black Horse Motor Finance has launched "Finance Direct" - a new initiative to help dealers increase their F&I income, without having to be FSA registered.
With continued pressure from direct lenders, and legislative constraints imposed by the FSA, many smaller dealers have abandoned attempts to offer finance and insurance to their customers at the point of sale. This vital income stream has clearly suffered as a result.
As the majority of smaller dealers are not FSA registered, they can not offer any general insurance or warranty products on vehicles. However, through Finance Direct, Black Horse deal directly with customers on the dealer's behalf, writing incremental volumes of Finance, PPP, warranty and GAP, whilst paying commission to dealers on any sales.
John Woolley, Managing Director explains, "It is vital that we continue to try and sell finance and insurance products where dealers can't, because they're not FSA registered.
DATED: 08.08.07
FEED: AW
With continued pressure from direct lenders, and legislative constraints imposed by the FSA, many smaller dealers have abandoned attempts to offer finance and insurance to their customers at the point of sale. This vital income stream has clearly suffered as a result.
As the majority of smaller dealers are not FSA registered, they can not offer any general insurance or warranty products on vehicles. However, through Finance Direct, Black Horse deal directly with customers on the dealer's behalf, writing incremental volumes of Finance, PPP, warranty and GAP, whilst paying commission to dealers on any sales.
John Woolley, Managing Director explains, "It is vital that we continue to try and sell finance and insurance products where dealers can't, because they're not FSA registered.
DATED: 08.08.07
FEED: AW
