Direct Car Finance is embarking on a rapid expansion campaign, acquiring dealerships across the UK, as it extends its used car network and targets a move into new car retailing.
The sub-prime specialist will add six sites – Sheffield, Derby, Dundee, Luton, Stoke and Cardiff – to its 14 outlets by the end of the year. It plans to have 25 dealerships within the next 12 months, with a sales target of 30,000 used cars a year.
Operations director Kevin Bann is confident DCF can double its £200m turnover within the next three years on the back of expansion into new cars through its Auto Nation brand.
“The new car market offers an opportunity at least equal to that in used cars and our belief is that the existing franchised network has been blinkered in its view of the sub-prime market,” he said.
“They have been insular in thinking they dominate the market, but we believe that by changing the way new cars are retailed and making them available to people who wouldn't otherwise be able to buy one, there is a great opportunity for growth.”
Mr Bann said DCF was in talks to acquire a small franchised dealer network and was hopeful of concluding negotiations by the end of the year.
Auto Nation operates two sites, in Leeds and Coventry, that sell new Protons and executive used cars like Audi and Mercedes-Benz.