Sunday, February 08, 2009
PoS finance rises to a 53.3% share
The credit squeeze helped the Finance & Leasing Association and franchised dealers to raise the point-of-sale share of motor loans on new cars to 53.3% in November. This is up from 46.4% a year ago.
Paul Harrison, FLA head of motor finance, said: “Dealer finance has performed remarkably well over the past 12 months, and the showroom share has steadily increased.”This year the FLA will build on its initiative that is winning showroom finance back from high street and direct lenders by extending its Specialist Automotive Finance (SAF) certification from individuals to dealerships.More than 5,800 people and 444 dealerships have registered for the on-line competence test, which needs to be retaken each year. Harrison said: “We will also add an approved status to SAF to help to raise its profile in showrooms with a range of materials available to help dealership staff to talk to customers.”Harrison said a lower demand for cars meant a liquidity problem for lenders, but used car volumes were relatively stable in 2008. “The core issue for FLA members is access to well-priced funding. “This has effectively dried up, which is why the FLA has called for the government to extend its support for bank lending to non-bank lenders, including motor finance providers.”
Harrison said this month’s Bank of England decision to cut base rate to 1.5% was not fully passed on to the inter-bank rate. Whether that rate continues to fall will determine whether FLA members can acquire funds at a lower rate, and in turn pass savings to their customers,” he said.“The FLA is talking to a number of government departments, including business and the Treasury, about a range of meas-ures which will help to restore confidence in the economy and the continued supply of credit to consumers. These include support for non-bank lenders until usual funding channels return to business as usual.”
DATED: 08.02.09
FEED: AM
Paul Harrison, FLA head of motor finance, said: “Dealer finance has performed remarkably well over the past 12 months, and the showroom share has steadily increased.”This year the FLA will build on its initiative that is winning showroom finance back from high street and direct lenders by extending its Specialist Automotive Finance (SAF) certification from individuals to dealerships.More than 5,800 people and 444 dealerships have registered for the on-line competence test, which needs to be retaken each year. Harrison said: “We will also add an approved status to SAF to help to raise its profile in showrooms with a range of materials available to help dealership staff to talk to customers.”Harrison said a lower demand for cars meant a liquidity problem for lenders, but used car volumes were relatively stable in 2008. “The core issue for FLA members is access to well-priced funding. “This has effectively dried up, which is why the FLA has called for the government to extend its support for bank lending to non-bank lenders, including motor finance providers.”
Harrison said this month’s Bank of England decision to cut base rate to 1.5% was not fully passed on to the inter-bank rate. Whether that rate continues to fall will determine whether FLA members can acquire funds at a lower rate, and in turn pass savings to their customers,” he said.“The FLA is talking to a number of government departments, including business and the Treasury, about a range of meas-ures which will help to restore confidence in the economy and the continued supply of credit to consumers. These include support for non-bank lenders until usual funding channels return to business as usual.”
DATED: 08.02.09
FEED: AM
