A newly relaunched internet initiative aimed at enhancing the used car sales performance of the UK's top dealer groups is claiming success in its first months of business, primarily through its acceptance of 'high risk' customers.
On:line Finance, the centralised consumer finance company and GMAC subsidiary, claims used car retailers using its services will sell more cars than through using traditional methods through its 'price to risk' formula.
Sales and marketing director Arnie Iversen said: “The great advantage to dealers is that our price to risk formula - or our acceptance of customers who would normally be ruled out as too high a credit risk by our competitors – allows us to accept far more deals than traditional lenders.
Reg Vardy testifies to the success of On:line Finance. Vardy's financial services manager Alan Cooper said: “Our alliance with On:line Finance has helped us to complete one of our objectives of creating a tiered structure of underwriters that makes it possible for our dealerships to obtain acceptances for a broader range of customers.”
He said On:line Finance had helped Reg Vardy sell an extra 2,500 cars this year.
On:line Finance is targeting the top 20 used car dealers and car supermarkets offering a “significantly higher acceptance rate for customers applying for finance packages than most lenders” using the 'deal and delivery' policy whereby customers get an answer within 30 minutes to finance requests.