I read, with interest, a recent article about how dealers are having to pay more for used cars due to the lack of availability of quality vehicles.
The upside to this situation is that the higher prices are merely reflecting better than expected sales of used cars which is welcome news for all dealers and industry suppliers.
Certainly, it’s a better situation than the market expected this time last year as the credit crunch continued to take effect.
The good news is that some manufacturers are beginning to increase new car production and over a period of time this extra supply should filter into the used market and help to address the shortage of stock.
The wholesale money markets have also been experiencing similar issues with the cost of money increasing over the past 12 months due to a lack of liquidity.
Unlike some lenders, Black Horse, due to the strength of our parent company, has continued to be able to access funds for dealers to provide point of sale credit to customers buying a vehicle.
The downside has been the extra costs associated with
raising funds and the need to pass on this cost to the car
However, we need to strike a balance which is both fair
and profitable for our dealers and for us, and this includes ensuring that funds are employed at an acceptable margin
It is crucial that we are able to make a reasonable rate of return, so that we can continue to support the industry with finance for the long-term.
With fewer lenders offering credit to consumers dealers continue to have a real opportunity to maximise the profit opportunity provided by the convenience and competitiveness of point-of-sale finance.
With the integration of Black Horse Motor Finance and Bank of Scotland Dealer Finance nearing completion, we too will
be able to move forward on a sound basis and ensure that
dealers will benefit from the strength of the new organisation
by continuing to provide dealers with funds to satisfy their
It’s just one of the benefits of dealing with the clear market leader with more than 50 years’ industry experience of point-of-sale motor finance.