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Motor finance company Southern Finance is warning motor retailers that, under the pressure of falling car sales, they need to make sure they aren’t losing out on lucrative car and insurance sales by only working with finance providers that use automated credit scoring systems.
Under an automated system some consumers will be given a low credit rating and rejected simply because, for example, they have returned from overseas and are not yet on the electoral roll.
Southern Finance is warning that many potential buyers could fall through the net even though they are probably financially stable.
But by using more flexible credit assessment procedures, dealers’ sales targets could see a much-needed boost in a struggling market.
Managing Director of Southern Finance, Miles Roberts, explained: “For a finance house, losing deals that fall outside of its credit rating structure is not an issue.
“But for a dealer every deal is crucial to their bottom line profitability and will have a knock-on effect on customer loyalty. By only working with finance providers that impose strict credit scoring guidelines, dealers may be losing sales opportunities unnecessarily.
“Competitive finance deals should help dealers drive up sales and the March plate change means performance should hit a high point. With this in mind, dealers need to ensure they can maximise sales, rather than letting them slip through their fingers.
”The latest data from the Society of Motor Manufacturers & Traders (SMMT) shows that registration figures for new car sales for January and February 2006 are down 9.7% compared to the same period last year.
Source:
Getting Paid
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