Following this week’s positive car finance statistics from the Finance & Leasing Association (FLA), Alphera Financial Services has said the industry must demonstrate the affordability it offers to perpetuate market growth.

Similar to the point made recently by Experian Automotive, among others, that awareness and acceptance of finance has changed consumers’ car ownership habits, Alphera has said dealers must now compete to attract increasingly informed customers.

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Sam Cripps, sales development manager at the BMW-owned independent lender, said manufacturers’ subvention deals had attracted a generation of customers who are "savvy" to a range of potential showroom offers.

In October 2012, Manheim-owned Motors.co.uk reported 85% of consumers it surveyed expected money-off or MOT or tax deals on car purchases. Similarly, in summer 2012, Jamie Dixon of web management firm GForces, told delegates at the FLA’s Used Car Seminar to expect the average customer to be highly-informed and open to finance offers thanks to preparation online.

Who watches the watchwords

"This means that car buyers have not just researched their potential vehicles when arriving at the dealership, but have also looked into finance offers from various sources, be it a bank, credit house or other lender," said Cripps.

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"For dealers, this means walking through various finance options – be it a loan, HP or PCP product," rather than assuming the "encouraging" figures from the FLA would continue automatically.

Cripps added "openness and clarity are the watchwords for dealer finance," particularly considering the subsuming of consumer credit regulation by the Financial Conduct Authority.

richard.brown@timetric.com