With continued pressure from direct lenders, and legislative constraints imposed by the FSA, many smaller dealers have abandoned efforts to offer finance and insurance at the point of sale. This vital income stream has clearly suffered as a result.
As the majority of smaller dealers are not FSA-registered, they can not offer any general insurance or warranty products on vehicles. However, through Finance Direct, Black Horse deals directly with customers on the dealer’s behalf, writing incremental volumes of finance, PPP, warranty and GAP, while paying commission to dealers on any sales.
John Woolley, managing director, explains: “It is vital that we continue to try and sell finance and insurance products where dealers can’t, because they’re not FSA registered.
“Finance Direct overcomes some of the challenges of selling finance at the point of sale, as the sales process is generally non-intrusive, so it doesn’t in any way jeopardise the sale of the vehicle. After all, most customers still need some sort of finance to buy a car.”
Dealers do not have to become FSA-registered, all they have to do is become an IAR (introducer appointed representative) for Black Horse and refer customers. Black Horse will contact the customer. During trials, Black Horse converted more than 70% of the customers referred – earning dealers an average £200 commission. This is a great opportunity for dealers to increase their income with little effort.
The Black Horse Finance Direct team will complete all the necessary FSA documentation, including “demands and needs” questionnaires with customers over the phone. So customers will only be sold products that suit their needs.
Extensive internal training has taken place, and a variety of marketing materials will be made available to support the promotion of Finance Direct in dealers’ showrooms.
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