With increasing numbers of direct lenders coming onto the market, motor dealers are being urged to offer more in their finance packages.
The warning comes from finance provider Singer & Friedlander Insurance Finance. It says that while competitive interest rates may look like a better deal initially, dealers should point out that a finance package is more than just borrowing money for the vehicle; there are many other benefits of a finance deal over a direct loan which the consumer can enjoy.
Complete mobility packages, including warranty, servicing, breakdown and up to 3-year fixed priced motor insurance are just some of the additions which can be included.
“The problem is that many consumers only see a finance deal as an alternative source to borrowing money,” said Tony Worthy, Singer & Friedlander Insurance Finance's managing director. “Therefore, the motor dealer has got to stand out from the direct lenders by offering sensible, competitive motor plans. For the car buyer, these can be ideal as it enables them to manage all their motoring expenses, including servicing and insurance, through one monthly payment.”
“This is a great opportunity for motor dealers, particularly in light of the recent changes to company car tax rules,” continues Worthy. “Many employees may be considering taking the cash alternative to a company car, when the new rules regarding CO2 emissions come into effect next year. Ex-company car drivers will not have previously had to budget for their motoring needs, a job traditionally undertaken by the fleet manager. As such, a package which incorporates insurance, MoT's, servicing, maintenance and so on will be appealing to these new market entrants.”