73% of Independent Dealers Suffer From A Lack Of Retail Finance
HPI Finance Gateway offers online finance solution to boost sales
In a new survey from vehicle information expert HPI, 73% of independent dealers blame the economic downturn for the lack of motor retail finance available to them. A further 73% subsequently believe that the shortfall in motor finance is damaging their ability to sell both cars and Finance & Insurance products, putting further pressure on profit margins in already tough times.
“It’s clear from our survey that the market is tough for independent dealers, with 43% believing they will see a fall in profitability in the first Quarter of 2012,” says Darren Greenyer, Head of Automotive Finance at HPI.
“With competition fierce, dealers need to ensure they stay one step ahead with access to great finance rates being crucial for winning new customers and retaining existing ones. The HPI Finance Gateway offers independent dealers direct access to competitive rates from leading finance providers, helping to boost profits and enhance their consumer offering,” explains Darren.
According to the HPI survey 65% of dealers reported a drop in used car activity and a 38% decline in used car transaction prices, reinforcing concerns over a weakening market for independent dealers.
“The good news is that over half the independent dealers surveyed by HPI expect profitability to stay the same in the first Quarter of 2012, with 17% anticipating an increase. Whilst 64% of dealers said that their business was currently profitable, a further 25% reported a year-on-year increase in profit margins. This suggests that there are growth opportunities for the dealers who adapt to the changing market,” continues Darren Greenyer.
“HPI Finance Gateway gives HPI dealers free access to leading finance providers, offering them competitive rates to boost the sales and profitability of their point-of-sale finance. The independent market remains gloomy in the short term, but dealers who exploit all the solutions available to them will be able to maximise profits and weather the storm for another quarter.”