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Record month for point of sale finance, but scope for growth

Dealers are providing a record number of loans for retail buyers of new cars, but a survey reveals many lose business by failing to provide the right online finance tools.

Finance & Leasing Association data shows manufacturer offers in February encouraged a record 64.5% of buyers to opt for showroom borrowing.

Paul Harrison, FLA head of motor finance, said: “The proportion of new cars bought using dealer finance has grown from around 47% two years ago. Retail loans for used cars are also up, by 9% in February.”

But a survey by automotive web management provider GForces shows only 38.5% of the UK’s top 200 dealer websites feature “essential” online finance tools.

Tim Smith, GForces commercial director, said: “Most dealer websites have no facility for visitors to generate simple finance quotations.

“Dealers routinely offer low-cost finance to attract customers, but many fail to deploy the simple online tools to help them secure a sale plus associated finance business.”

Smith said people with shrinking disposable incomes expect to find a finance calculator to research a vehicle purchase.

“Insurance is another missed opportunity. Price comparison sites capture the lion’s share of that business and most dealers aren’t even in the game.”

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  • alexdavis - 25/05/2012 15:12

    I completely agree!! With both new and used car finance sales consistently on the rise, to overlook web F&I would be to ignore the proverbial elephant in the room. Codeweavers provide a comprehensive online F&I solution for OEMs, around half of the AM Top 100 and hundreds of smaller franchised and independent dealers.