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Dealer finance ‘missing out’ says broker

By Tony Willard

Dealers are being urged by broker Mann Island Finance to take the high ground on retail motor finance, saying its latest online forum review reveals confusion on websites.

John Hughes, Mann Island Finance director, said: “Dealers need to be far more proactive in promoting the availability and convenience of showroom finance.

“More information is required to help would-be customers.

Few of the forum threads analysed mentioned dealer finance and it appears that in the DIY digital world dealer finance risks missing out.”

Hughes said the boom in new car finance sales pointed to an opportunity in used cars that is full of potential (p25 – 26% used car loan surge).

“Consumers are aware of the challenges in seeking finance and look for guidance to help them get the best deal,” he said.

Customer concerns

Mann Island Finance analysis of online finance forums revealed frustration at acceptances given with a higher APR than the one advertised.

Car buyers also disliked the inability to discuss finance, with processes largely now online.

Other concerns were about the negative impact of multiple applications on acceptance and loan rates and, by people with a perceived good credit rating, APRs and the reality of ‘rate for risk’ underwriting.

Hughes said: “The forums show that above all customers want service and help.

"Their first port of call may often be a search engine, so a dealer’s site must provide clear, helpful information.”

He said smart dealers could add the following on their websites: ‘If you need guidance on finance to buy your chosen car talk to us, we can help’, and back this up with a high-integrity approach supported by high-quality F&I training.

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