As profit margins in the car industry narrow, car dealers will increasingly look to online motor finance in order to increase their bottom lines.
This is what finance specialists at iVendi believe. The firm says that due to high trade prices, dealers are looking more toward finance in order to make a profit.
Online Finance
James Tew, the Chief Executive of the online motor finance technology specialist iVendi, said that two trends were starting to emerge within the industry. One was the increasing number of customers completing their car purchases online, including motor finance.
The other trend, according to Tew, is that motor finance is now very important to car dealers who are confronted with trade and retail costs that are now so close that it is becoming more and more difficult to make a decent profit. In his words, this means that dealers are looking into offering their customer base a number of options when it comes to online finance. However, the quality of online finance offered varies incredibly from dealer to dealer.
According to Tew, who was quoted in, even the smallest of independent car dealers should be offering their customers some kind of finance calculator. On the other hand, large companies should have a more complete array of products from a range of lenders, all of which can now be completed online.
Tew also said that those dealers who put the most work into their online offerings will likely be the ones who benefit the most.
Industry Behind the Curve
Most of the customers who go out to buy a car, around 80 per cent, are quite happy and confident to use the internet when looking for finance or motor trade insurance like the offerings found at https://www.quotemetoday.co.uk/motor-trade-insurance/ when it comes to purchasing a car. The problem is that many of these same customers feel that the car industry is behind the curve in the field of online finance, Tew claimed.
Next year may well be the year in which car dealers can no longer ignore the financial benefits that online finance brings if they want to continue making a decent profit. This is especially relevant given the 20 per cent slump in UK car sales in September of this year.