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Barclaycard charges into F&I market

Barclaycard looks set to rattle the £11bn F&I market by launching what it claims is a unique new car finance proposition. It's a personal loan product rather than a hire purchase agreement, a package that would protect the dealer from voluntary terminations.

The Barclays Bank owned organisation says it has already signed up more than 400 dealers including several AM100 listed companies. The company – operated by Barclays subsidiary Clydesdale Financial Services – believes there is a gap in the market after the demise of the £2.9bn First National Motor Finance last year.

Andrew Brameld, Barclaycard Loans national sales director, says: “The closure of First National opened a window of opportunity in motor finance. We want to be seen as the dealer's finance company, offering new and unique propositions with ambitious market growth.”

Brameld would not be pushed on where he saw Barclaycard Loans in two years' time, but were it to secure a substantial share of the estimated £3bn gap in the motor finance market, it would be propelled into the F&I top three, competing with Black Horse, Capital Bank and GE Capital in a market worth £11bn a year.

Another first is Barclaycard Loans Club – branded dealer cards to help with the cost of replacement parts, servicing and MoTs. Brameld calls the initiative “a straightforward way for drivers to fund their motoring costs”.

Barclays' last foray into motor finance was Mercantile Credit, sold to GE Capital in 1991.

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