Point of sale car dealer finance on the rise
Posted on February 9, 2009, under Car Financing.
Results have shown that the point of sale finance for cars that are new as well as used are on the rise after witnessing a huge slump in the past ten years. Studies conducted across the globe show that the point of sale finance of the dealers had suffered a vicious beating courtesy of a fragile image and incompetent reflection, something which is picking up now. Auto loans and vehicle loans will become more available, a proposition which initially seemed to be in jeopardy. The revelation comes as a pleasant surprise to car lovers as the struggle endured by buyers initially in getting auto loans and vehicle loans become unbearable. A study released some time ago said that the past decade was very upsetting which saw franchised brokers’ latest classified car finance infiltration witness a deep fall of 11 percent from 52 to 41 percent where as the finance incursion for used cars saw a plunge of 23 per cent from 53 to 30 percent.
The situation had made vehicle leasing and car lease a near impossibility, something which is expected to improve drastically. Courtesy the unavailability of car lease and vehicle leasing, car sales had dipped and buyers were getting perturbed. During that harrowing period, the autonomous traders suffered the most as their market penetration nose-dived to 20 per cent, half of the number that they post. This almost put them out of commission as non availability of auto loans and vehicle loans plummeted sales to an all time low. Now with the news of PoS car dealer finance being on the rise, financial institutions will again consider encouraging car lease and vehicle leasing. They might also come out with ideas related to innovative lease which would not sabotage the ongoing process. The market for used cars had experienced the heaviest hit courtesy to its bigger size in comparison to the new car market. Private buyers started refraining from purchasing used cars, a situation which required tactics on innovative lease to put into action. It is being hoped that they will again jump onto the bandwagon and play a role in eliminating this crisis from the roots.
The fact that really alarmed everyone was that dealers, both franchised and non-franchised were at a heavy risk of losing out on incredible sales had they not promoted the concept of PoS car finance to clandestine car consumers. They were under tremendous pressure of coming up with ways of innovative lease on PoS to prevent such a misfortune from happening. So, with this delightful news coming in, many franchise players will have an undisturbed sleep with regards to the ongoing situation.
