Alphera Financial Services is calling on dealers to personalise their showroom offers ahead of a new bid for car loan market share expected from direct lenders this autumn.
Finance & Leasing Association data reveals that point-of-sale took 55.7% of the market in the year to May.
The fight back by dealers has been led by the FLA’s SAF (specialist automotive finance) training initiative.
Spencer Halil, UK director of Alphera, BMW Financial Services all-makes division, expects the point-of-sale share to keep rising this year but warned: “Direct lenders are looking to up their game with particular focus on PCP and HP. A survey by one major supermarket indicates that plans are in place.
“Dealers must advertise competitive and attractive finance packages effectively, giving customers the choice of different bundles and buying options.
“They should work on their unique product offering. Customers like to feel they are getting a personalised deal, the competitive edge dealers have over direct lenders.”
Halil believes the catalyst for direct lenders’ plans was an FLA report in June which revealed that buyers are primarily focused on good finance deals rather than car ownership.
“This sparks the perfect opportunity for direct lenders to find ways to take advantage of a change in consumer behaviour,” he said.
“Our business development managers tailor offers to specific vehicles in a dealer’s stock to make them stand out or to support pack purchases from their franchise.”
Alphera has a range of methods to focus on sectors within a dealer’s customer base. It can personalise, for example, campaigns that target golf players in an area, and support sales weekends and seasonal pushes.