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Finance is source of disquiet

Findings published in the annual Sewells Used Car Finance House Survey reveal franchised dealers’ growing dissatisfaction with used car finance providers.

The 2005 survey attracted 936 responses from franchised and independent used car retailers.

Franchised dealer satisfaction fell from an all-time high of 80.1% in 2004 to 77.8% this year. And independent dealer’s satisfaction fell for the second year running from a peak of 85.6% in 2003 to 82.0% in 2005.

Research analyst Chris Oakham says: “The survey highlights the principal factors which underlie the best relationships, and it is attention to these areas that leads to competitive advantage in a cut-throat market, squeezed by cheap loans from banks and building societies.”

DaimlerChrysler Services was rated top by franchised dealers, increasing its rating to 87.2%. For independent dealers, Close Motor Finance was highest rated at 85%.

Carmakers’ finance companies take 39% market share (by vehicle units), while independents take 61%, with Black Horse, Capital Bank and GE Capital alone accounting for 47% of this total.

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