Hitachi Capital Consumer Finance (HCCF) is to enter the UK motor finance market.
It is to test all areas of the market as part of its entry strategy, and will facilitate finance tailored to small privately owned car dealerships, multi-franchised dealerships, used car supermarkets and vendor programmes.
Gerald Grimes, managing director, Hitachi Capital Consumer Finance said: “Our management team have many years’ experience and expertise in the motor finance industry and this, combined with our strength in consumer lending, means entry into the UK motor market is a natural progression for Hitachi as a brand.
“As a business we plan to grow through the development of innovative finance offers and see the UK retail motor finance market as a key area of growth for Hitachi Capital Consumer Finance, part of one of the world’s largest companies, Hitachi Ltd. Our measured approach is based on the right deals to grow our offer organically, ensuring that the motor market will play a large part of the company’s future plans.”
All business will be transacted through the Leeds head office, with Hitachi Capital Consumer Finance projected to lend over £1 billion in the current financial year.
Grimes said: “It is part of our overall business plan to continue to grow and develop within this market, it is all about development at this stage to gauge the market potential, in order for us to really drive our presence and offer.
“Currently, unlike many banks and other financial institutions we have available credit facilities and as such have significant ambitions for this market. We are very excited about entering the sector and look forward to expanding this over the coming months and years.”The Japanese consumer finance division made the decision after a nine month trial involving a small panel of brokers and a car supermarket.
HCCF already provides non-motor finance for around 650,000 consumers in the UK.
In a statement to Motor Finance, the company said it was discussing relationships with select franchised dealer groups.
“We will thoroughly test all areas of the market as part of our entry strategy, from small privately owned car dealerships to multi-franchised dealerships to used car supermarkets to vendor programmes.”