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FLA presses Government over loans

The Finance and Leasing Association is still pressing the Government to make competitively priced money available so that specialist lenders can supply dealers.

Talks started last autumn and have continued throughout this year following Government intervention to safeguard banks’ loans.

In a report on Government assistance for the motor industry, the Commons’ Business and Enterprise Select Committee said it recognised the need to provide support for companies providing motor finance to consumers and businesses.

Stephen Sklaroff, FLA director general, said: “Access to well-priced wholesale funding is still a problem for many motor finance providers and that means they may become unable to meet demand for car finance. 

“We now need practical action on schemes to help improve the availability and affordability of funding.”

Online FLA training to help dealer staff to sell point-of-sale finance has helped to increase retail penetration over 50% during the past 12 months. In the year to June, says the FLA, showroom finance sales on new cars accounted for 52.4% of the total market.

Carlyle Finance CEO Mark Standish said: “There is a great opportunity for dealers to really make finance count to close sales. A number of loan providers have moved to increase loan rates over recent weeks and to limit the best rates for advances over £7,500 on other occasions.

“The knack for dealers is to increase finance penetration by being price competitive – making a little from a lot means the result will be more.”

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