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Dealers see no effect from credit crunch on finance sales

Over half over UK dealers believe they have seen no effect on point of sale finance from the credit crunch.

The findings come from Sewells’ New Car Finance House Survey 2008 which focuses on franchised dealer satisfaction with the finance companies servicing the market for new car POS finance.

So far with over 250 responses to the survey, 30% believe the credit crunch is working in their favour and bringing more POS enquiries. However 58% say there is no change compared to six months ago and only 12% think the credit crunch is working against them.

On the other hand, 37% of respondents say their new car finance companies are turning down more proposals than last year, but 7% say that acceptances are up and the majority (57%) say there is no change.

Berta Collins, commercial manager at Sewells, said: "While it’s early days yet for the research programme, there is reason to believe that the credit crunch could be working in favour of POS dealer finance.

"Selling POS finance could become an important profit centre to dealers in the difficult months ahead especially as those responding so far have indicated a slowdown in footfall and enquiries for new cars."

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