and tells me how bad it is out there, I’ll jump into my oversized,
gas-guzzling executive car, drive to his office and strangle him
with his telephone cord. Unless of course he’s using one of those
hands-free DECT thingies, in which case I’ll smash him over the
head with the base unit.
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Now don’t get me wrong, I’m not a violent man but don’t you just
get tired of hearing how bad it is out there and how dealers and
brokers are about to go bust whilst funders are finding it
difficult to fund a cup of tea? I guess it’s that British thing of
stating the obvious at times when it doesn’t need to be stated!
Maybe it’s because we lack creativity in this country. What has
happened to our imagination and our ability to turn bad situations
into good? Here we are with a major cash flow crisis. Consumers and
businesses are seeing their expenses increasing daily: from fuel to
coffee, mortgages to toilet rolls, it’s all stretching the budget
and yet, when it comes to great products such as contract purchase
and contract hire that will save loads of cash, whether you are a
small business or consumer, most potential customers haven’t even
heard of the products, let alone understand their workings.
Leasing on the telly
But why? Why is it that we have whole TV programmes dedicated to
banking, mortgages, pensions, savings and investment schemes but
virtually nothing on car finance? There are no ads in the press or
on TV and yet we should be banging the drum as a way to offset the
increases everywhere with cash flow savings on car finance without
the resale risks.
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By GlobalDataYou see the odd lines in adverts for cars, saying lease this car
for around £200 per month, but no serious attempt to educate people
on the subject. In a survey carried out in 2004 by the Institute of
Financial Services, four out of five people surveyed didn’t know
that APR related to loan costs, and two thirds didn’t know how to
calculate a simple percentage, so what chance do you have with
potential customers when they haven’t got a clue about the products
available?
Is this the fault of the brokers? Yes! Get off your suicidal
backsides and get creative about getting the message across to a
huge number of potential customers.
But it’s not just the brokers, it’s the funders as well that
should do better. Years ago, when I was the cost and management
accountant for perfume manufacturer Fabergé, we spent fortunes on
packaging, training and point of sale material as well as TV and
radio advertising. Why don’t funders do the same? If you are a
funder who likes broker business, you should help the brokers to
sell your products; after all, these are your most cost-effective
sources of business as they only get paid when they do a deal. It’s
not bloody rocket science and we all stand to gain – even the
customers!
Motor Finance Issue: 45 – July 08
Published for the web: July 25 08 15:38
Last Updated: July 28 08 12:13
