Under an automated system some individuals will be given a low credit rating and rejected simply because, for example, they have returned from overseas and are not yet on the electoral roll, Southern Finance says. It is warning that many potential buyers could fall through the net even though they are probably financially stable. However, by using more flexible credit assessment procedures, dealers’ sales targets could see a much-needed boost in a struggling market.
“For a finance house, losing deals that fall outside of its credit rating structure is not an issue”, said Miles Roberts, managing director, Southern Finance.
“But for a dealer every deal is crucial to their bottom line profitability and will have a knock-on effect on customer loyalty. By only working with finance providers that impose strict credit scoring guidelines, dealers may be losing sales opportunities unnecessarily.
“Competitive finance deals should help dealers drive up sales and the March plate change means performance should hit a high point. With this in mind, dealers need to ensure they can maximise sales, rather than letting them slip through their fingers.”