Auto Service Finance (ASF), an interest free payment plan aimed at the aftersales market, has rolled out at its 320th dealership in the UK.
ASF is an alternative to a service plan and aimed at franchised dealer customers that wants to split payments across three interest free monthly instalments, with dealerships paying a transaction fee on the total purchase amount.
ASF said its loan data shows 47% of the total customer loans to date in 2016 have been to cars aged between three to six years old, with an overall average vehicle age of 6.6 years. This highlights that the majority of customers taking the finance are out of the warranty period on their vehicle.
Jack Allman, ASF chief executive, said: “As the use of traditional loan sources, such as credit cards, declines, customers are looking for alternative means of paying, which offer the flexibility they require.”