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9 out 10 car buyers did not use dealer finance

21st April 2010 Print

Analysis from the Finance & Leasing Association (FLA) showed that consumer used car finance sales still remain slow, with 19% fewer cars sold on dealer finance in January than the same period last year. This comes as no surprise to vehicle information expert HPI, who reveals that only 11% of car buyers it surveyed would take out finance through a dealer and 56% of those looking for finance through dealers stated that the rates weren’t competitive. 

The survey also showed that 52% of those respondents that were actively looking for finance believed there were less finance options available to them. This is particularly worrying given 74% of those car buyers surveyed said they were not worried about using credit for their next car purchase, demonstrating there is clearly a market there for car dealers.

Unsurprisingly 77% of respondents confirmed that competitive rates are the most important factor to buyers when offered finance from a dealer. HPI Finance Gateway can help dealers take advantage of this market.   HPI Finance Gateway looks at each customer’s circumstances and matches them with lenders who are most likely to be able to offer them competitive terms.

“When looking to replace a car, working out how the replacement is to be financed is one of the most important elements of the decision.  Unfortunately car finance through dealerships has gained a reputation as being uncompetitive and a general lack of its availability is putting buyers off turning to dealers.  This is to be expected when you take into consideration that high profile lenders have moved away from this market in recent months,” comments Daniel Burgess, Automotive Director of HPI.

“HPI Finance Gateway is bringing competitive and convenient car finance into the showroom by ensuring the customer gets the finance package that is right for them. We have made car finance a simple and transparent process for both dealers and consumers, our system is designed to improve conversion rates and so maximise profits for dealers at the point of sale.”

With HPI Finance Gateway, dealers can have instant access to some of the most competitive rates online.  It comes with no commission claw-backs for the dealer and delivers an instant online proposal from the finance company best suited to the customer’s personal credit rating and the profile of the car.  This is seamlessly achieved using HPI’s immediate and integrated VRM look-up. 

Whilst over half of all the car buyers surveyed by HPI said that they believed there to be less options on the market available to them for vehicle finance, HPI Finance Gateway can help dealers offer a much wider range of finance packages at absolutely no cost, whilst boosting their own profit.