NFDA tells dealers - don’t give up on finance

Car dealers believe who believe that in-showroom finance sales are unpopular with consumers are missing out on a major business stream if they neglect this area, according to the National Franchised Dealers Association (NFDA).

Vehicle dealers are giving up on finance sales, blaming a perceived unpopularity with consumers.

Louise Wallis, the NFDA’s head of business development, commented: ‘Dealers believe that in-showroom finance is perceived by consumers as expensive. However, this is a false assumption. A recent survey has found that the 24 per cent of consumers who need to arrange finance to complete purchase of a vehicle will choose to do it at the dealership.

The level of Government regulation has also put dealers off this business segment. The Consumer Credit Act 2006 added more complex regulation to the selling of finance, which has become an added burden to dealers.

Finance package sales are regulated by the Office of Fair Trading (OFT). The NFDA is working with the OFT, as well as the Financial Services Agency (FSA) to try and simplify some of the more complex and time-consuming elements of the regulations.

‘We are liaising with the OFT and FSA to try and achieve a more workable regulatory environment for dealers,’ Wallis added.