So how best to meet the current challenges? The current financial money markets are fragile and not just due to UK inflationary concerns. Problems in the US sub-prime mortgage market have global ramifications – banks have suddenly started charging significantly more for the money they lend to each other, signalling that they are looking to limit their risks – this is the key factor behind the fall in stock prices reported recently.
In such an environment, consumer confidence can dip. We need to responsibly help customers to appreciate how they can change car – and how finance can play its part.
The key is to invest more time, effort and money in ensuring personnel are confident in their use of finance in the showroom and in marketing. A real leadership focus on finance is required, supported by rigorous and sustained training. In this respect you should be looking to your finance provider for help.
Ensure every customer understands the competitive and convenient nature of your offer and how secured finance is appropriate.
Over recent years dealer finance sales have fallen and there is a real risk that sales personnel are not as confident in offering finance as they could be – we need to change that and we need to start today.
July inflation fell below forecasts to 1.9%. We are not out of the woods yet in terms of the risk of further rate rises, but investing in your people’s finance skills to deliver a better customer proposition will create enhanced results, no matter what the economic outlook – the first step is to commit to change.