An online product developed by HPI is designed to boost the sale and profitability of dealers’ point-of-sale finance.
Finance Gateway is being trialled now amongst HPI’s 14,000 dealer customers before official launch on October 1.
The system is designed to offer competitive rates from the leading finance providers at no cost to the dealer.
It comes with no commission clawbacks together with an instant proposal score that’s sent to the finance company best suited to the customer’s personal credit rating and the profile of the car, through an integrated VRM look-up, with the finance deal.
Prime and sub-prime finance will be provided with dealers able to ask for a ‘quick quote’ or full proposal.
Quick customer screening, via Call Credit carrying out public searches on a customer before the application is sent to the finance provider, should mean higher acceptance rates,
Unlimited balances are available from £1,000, with the advance paid directly to the dealer.
Another product launched at the same time, Finance Watch, means dealers can track the deals they made and make follow up calls, for example, as they near their end.
Finance Gateway partners so far are Santander, Fortis, Southern Finance and Moneyway, part of Secure Bank Trust.
Daniel Burgess, HPI automotive director, said: “Our aim is to put finance back in the dealer showroom using a simple and transparent process that works for both the consumer and the dealer while delivering quality, volume business for our finance partners.”
Finance Gateway, he said, is based on the principle of making less margin on each deal – HPI caps the margin that can be added – but volume of profitable and sustainable business built on the customers’ confidence they are getting a good deal, increases.
Part of the offer for dealers includes six months free HPI checks for each car proposed.
The consumer taking out a loan through Finance Gateway will also get free 12-month MoT insurance, plus seven days free insurance through HPI’s Driveaway package, available since 2005 and offered by 5,000 dealers.
For finance companies, Burgess said, the appeal will be instant credit scoring, a healthy yield and reduced administration.
HPI will make money on Finance Gateway through the fees paid by the finance companies on each deal sold.