Motorpoint bucks trend in latest credit crunch

As the ongoing financial market turmoil threatens to curb economic prosperity and the borrowing of credit becomes tougher, it is becoming more difficult for consumers to find affordable credit to purchase new and used cars. This is set to put increased pressure on the franchise dealer network in 2008 with over a third of retailers predicting a downturn in annual sales compared to the levels seen last year, according to the latest research by data providers, CAP.

However, Motorpoint, the UK’s leading car supermarket, has defied the current market trend, witnessing a surge in sales in January buoyed by strong demand from buyers employed in the public sector, and the availability of competitive finance arrangements. Contrary to the offering of conventional franchise dealers, Motorpoint customers have the advantage of being able access both a large range of makes and models combined with the affordable means of buying a vehicle thanks to the retailer’s finance programme for new and used cars.

Under the Boomerang scheme, which is underwritten by Lloyds TSB’s Blackhorse arm, and regulated by the Financial Services Authority, Motorpoint provides a £300 contribution towards the customer’s deposit. In addition, there is a guaranteed future value at the end of the three year repayment plan, which is tailored to suit individual budgets to reduce the risk of irresponsible lending.

Commenting on the on the latest trend, Garel Rhys, emeritus professor of automotive economics at Cardiff Business School in Wales explains: “Ironically, it has taken the credit crunch to bring car supermarkets into their own. They are in a strong position during this period of uncertainty, as they have access to a large range of vehicles at competitive prices with affordable finance deals available for customers.”

David Shelton, Managing Director of Motorpoint, adds: “Whilst franchise retailers are looking to adapt the profile of their forecourt stock to compensate for a less buoyant market, we are able to offer vehicles across the spectrum, spanning from city cars to stylish cabriolets, which means that there is something to suit everyone’s pocket. This is a very encouraging start to the year.”

For the latest deals at Motorpoint, visit motorpoint.co.uk