BUILD: iVendi urge dealer and lender haste
The time for dealers and lenders to build motor finance market share is limited and must be maximised while the opportunity remains, iVendi have warned.
If the economy continues to grow consistently, the company claim, there will be a gradually-returning risk appetite on the part of personal lenders.
They will then re-enter the market in an increasingly aggressive manner, iVendi believe.
James Tew, Director at iVendi, said: “Personal lenders will return to the motor sector at some point in a fairly dramatic fashion.
“The question is when.
“The answer probably depends on the macroeconomic picture but, if the economy continues to pick up, we may see their credit rules relaxed in as little as a couple of years.
“This means that there is a limited ‘window’ when dealers and lenders can make the most of a relatively open market for motor finance, building market share and making it the default choice for anyone buying a new and used car.
“Essentially, what needs to happen is that they use this period to become very good at promoting and selling motor finance, building a bulwark for when personal lenders return and the market becomes more competitive.
Mr Tew added there were already a number of key initiatives in place across the market designed to achieve this, with the accent on a ‘sell through’ motor finance model that places an emphasis on effective dealer sales processes.
“Through our work with motor finance lenders, we can see that there is a lot of work going on in the market to promote and sell motor finance in new and stimulating ways,” he said.
“We also, of course, are involved directly with products such as our Quoteware and Car Finance Checker, which are designed to create innovative ways of selling motor finance to the customer online through a process of engaging, converting and transacting.
“These are very interesting times.”