RMI Motor Finance, the newly formed finance arm of the Retail Motor Industry Federation, is launching its own ‘near prime’ finance product aimed at its members.

The new product, which has been created by Moneyway, is designed to fill the gap that has been left by many subprime lenders leaving the market.

The RMI believes the new product will allow motor dealers to offer finance products to a broader range of customers and then enable them to sell more cars.

In addition to the ‘near prime’ facility RMI Motor Finance will also be offering a prime proposition. The initial focus of this offering will be the small to medium size dealers who have seen a significant reduction in the number of finance companies supporting this sector.

David Nield, head of asset finance and lending at Moneyway, said: “We are delighted to be working with the RMI and to have the opportunity of working with its members.

"When considering our entry into the motor finance market a year or so ago, we were very determined to avoid being just another ‘me too’ proposition. We have invested in a new, simple to use, online registration and application process which we hope can help RMI members in this difficult economic environment.”