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Dealers miss out on used car sales and finance

The March market gives dealers the chance to prosper with used car finance alongside loans for 13-plate first registrations, said Karl Werner, MotoNovo Finance head of sales and marketing.

“Affordability in terms of monthly repayments is a key part of the way customers choose a new or used car,” he said.

“Customers commonly come into the market with a clear idea of what they can afford.”

Werner said that all too often dealers were missing out on two opportunities that arise in used sales – the car and the finance.

The tremendous growth in new car finance was a path that could be adapted in the used car sector as well.

“Affordability can be offered and delivered,” he said.

“We need to be more proactive and positive in doing just that.

We have the tools and training to help those dealers who want to benefit.”

Werner said that while new car finance penetration was running at record levels, the volume of used car loans had changed little over the past five years.

“PCP finance may not be appropriate for many used cars,” he said.

“But other finance options to enhance affordability are not available from high street lenders.”

Werner said direct lenders continued to have low acceptance rates, which had driven up the cost of loans.

He encourages dealers to include monthly payments in all marketing: “When buyers can match their budgets with their chosen car they can see finance pricing transparency.

“Online calculators bring finance to life, rather than restrict information to ‘finance available’, which creates little value to customers.”   

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