ACF Finance, which has expanded following the collapse of rival sub-prime specialists, is adding a fourth lender that will provide a further £5 million to retail car buyers.

The new lender, Specialist Motor Finance (SMF), is like ACF part of The Funding Corporation (TFC).

David Challinor, managing director of TFC and SMF, said that with a wider choice of lenders ACF could help more people needing a loan to buy a car.

“Demand for ACF’s services is anticipated to increase further throughout 2011 and beyond,” said Challinor.

“The introduction of SMF is placing ACF in the strongest position possible to deal with the potential new business.”

SMF is based at the head office of TFC and no staff have been added..

ACF Finance sells nearly-new and used cars at eight outlets around the UK but not point-of-sale loans.

These are provided by TFC and its subsidies – Cygnet Financial Services and now SMF, plus Advantage, a third-party finance company.

In January TFC announced that Barclays would provide its funds for two years – the longest commitment made by the motor finance lender.

ACF Finance has been investing in the premises of its car sales network ,because of the scope for growth it believes has been created by a tightening of credit criteria by many lenders.

TFC recently closed for 24 hours to bring together all 250 employees and set out its new set of ‘vision and values’. TFC is SAF (specialist automotive lender) approved by the FLA.