August 21, 2007

Car dealers losing out on finance

It would seem that car dealers are not pushing finance enough and therefore are missing out on a useful stream of income, according to the National Franchised Dealers Association (NFDA).

Apparently dealers are afraid to push the finance because of the reaction of customers, there has been so much bad publicity regarding the finance deals on cars that people are not interested in this anymore. The main reason being is buying a car in that manner, is far too expensive.

But the research show that out of the customers who are looking to buy a car on finance, only 24% actually complete the process through the dealer.

There are other reasons for this, recent legislation means that dealers are very weary of selling finance, in fact they see it as more hassle than what it is worth, especially the smaller dealers. Large dealer groups however can afford to have a dedicated dept, where all of the financial matters are taken care of.

Source [Easier]

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