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Used cars: Dealers are urged to increase finance sales

Alphera wants to change used finance mindset

Alphera UK has started training members of its sales teams to look at changing the mindset about used car finance products, said Andy Gruber, its new director.

The aim, where applicable, is to introduce HP and PCP into the sales process for dealers linked to BMW Financial Services’ multi-makes division.

He said the PCP offer was very flexible, making it possible for cars up to four years old to be placed with customers.

“It also helps with placing customers with the cars they aspire to drive, which usually means they can have a newer car because of the way the product works,” said Gruber.

“It helps dealers if they have stock to shift and is a way of increasing used car penetration and sales. Getting more used car departments to look at PCP can help the sales process all round.”

Black Horse managing director Chris Sutton said good point-of-sale material was important for used cars as well as new ones to highlight benefits additional to bank loans or other finance products.

“Never assume a customer automatically knows that finance is available or what products are on offer,” he said.

“Different POS items used creatively let browsing customers build up a picture of what is available before engaging someone in sales directly.”

Dealers increased their share of the car finance market considerably in 2011.

“We also had a good year, finding that customers are increasingly turning to point-of-sale finance as the first choice option to let them purchase a car,” said Sutton.

“Of course, there’s always room for improvement and growth.

"It’s essential for dealers to be able to close deals quickly and compliantly, and get paid faster.”

He said it was important for dealers to have a wide variety of products to give their customers choice, including traditional HP, lease purchase, PCPs, personal loans, contract hire and personal contract hire.

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