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Sewells best practise: Works starts on new car finance study

Fieldwork is under way for Sewells New Car Finance House Survey 2005. This edition is the 10th annual study of its type, reporting primary research focusing on the quality of the relationships between franchised dealers and their new car finance companies.

Uniquely, the New Car Finance House Survey investigates dealer relationships with every finance house operating in the new car market. This survey has become a vital benchmark for the retail automotive finance industry, enabling finance houses to set realistic targets for improving their relationships with dealers and providing a consistent measure of their efforts.

Last year’s research showed a downward trend in dealer finance penetration – the average (in terms of units) fell from 48% in 2003 to 44%. However, previous surveys have highlighted a continuous rise in dealers’ satisfaction with new car finance companies since 1999 – the 2004 research showed an average rating of 78.5%.

Significantly, since the first survey in 1995, an increasing number of vehicle manufacturers’ finance companies have featured near the top of the overall rankings. Last year, 13 of these rated above average, and a further seven missed out by just one position.

The New Car Finance House Survey has identified good service as dealers’ principal consideration.

With improved service comes increasedsatisfaction. And, as many of those who subscribe to the research have told Sewells, this means more business and profit for the finance houses.

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