Car dealer Stoneacre Motor Group has revealed it has written £1.6 million worth of finance through its lending arm.
Having first entered the rate-for-risk segment of the car finance market in 2007 with the opening of an in-house brokerage, the Doncaster based group launched its own lending business in 2013, called Stoneacre Financial Services (SFS).
It saw Stoneacre become the first motor group to lend its own capital against the purchase of used cars to customers who fall under the umbrella of rate-for-risk.
Data released by the group shows that the £1.6m of finance written to date is split across 271 rate-for-risk finance agreements with a maximum vehicle age of 12 years at the end of the agreement and a mileage no greater than 95,000 at inception. The average advance falls just short of £6,000.
The group's lending facility is based on a scorecard that has been developed in conjunction with Marsh Finance and has enabled Stoneacre to take control of its own lending decisions and allows them to underwrite deeper than ever before.
Used in addition to the third party financing options that Stoneacre has access to through a panel of specialist lenders, the motor group revealed that the SFS facility is often only used when they are unable to place a customer with another lender.
Talking about the development, group head of digital sales and finance, Mark Zavagno, said: “£1.6m may seem small in relation to the amount put up for lend by specialist lenders and high street banks, but it is only the beginning and nonetheless a significant landmark for SFS. We believe it to be the first example of a motor group successfully launching and operating its own lending arm in what has become a highly competitive segment of the market, an achievement that we're all incredibly proud of.”
Referring to the advantages of lending its own money, Zavagno said: “Having access to our own funding line allows us to determine our own underwriting criteria. This enables us to help customers who have been unable to obtain finance elsewhere, but can clearly demonstrate their commitment and ability to make monthly repayments.
On future plans he said: “We plan to build on our success to date by growing our market share, something we'll achieve by diversifying our offering and continuing to adapt to changing consumer demands and market conditions. We expect to lend a further £1.6m over the coming year alone.”