Fears websites may lead
motor finance industry into commoditisation. Charles Wheeldon
reports.
Go deeper with GlobalData
A former LeasePlan executive
has become sales director at FinanceAcar, which recently launched
as the world’s first car finance comparison website.
Richard Bunn was a director
at LeasePlan subsidiary Fleetline, prior to which he served as
general manager of sales and operations for LeasePlan broker
division Network.
His new company’s website
compares car finance products for new cars (including car leasing,
contract hire, hire purchase and car loans) and claims to take into
account more than one million prices offered by manufacturers,
dealers and UK lenders.
It allows consumers to choose
a car by make or budget, and suggests the cheapest product and
monthly finance price.
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By GlobalDataFinanceAcar claims to fill an
estimated £11.5 billion gap left by existing UK price comparison
websites, which only compare prices relating to car loans. Research
by Sainsbury’s Bank suggests these account for only 15 percent of
the market.
Bunn said: “The present and
future of vehicle finance for both personal and small business is
online. FinanceAcar’s comparison engine is attracting car shoppers
early in their buying cycle.”
FinanceAcar’s business
development director Nadim Saad said: “An important part of our
plan is to establish strong ties with our suppliers, such as
manufacturers, dealers and leasing companies, to connect them with
the most relevant car buyers who have already made a decision on
their car and finance package.”
Some players in the motor
finance world have voiced concern that FinanceAcar may be leading
the industry into an era of commoditisation, where the only factor
taken into consideration by consumers is price.
Concerns will be addressed by
the launch of the National Association of Commercial Finance
Brokers’ own (NACFB) website, which is expected to be announced at
its AGM and gala dinner on 18 November.
Graham Hill of GHA Finance,
who developed the site alongside the NACFB, said: “We are going to
provide a website for consumers and small businesses to view the
various deals available, and to make contact with those advertising
on the platform. Advertisers will all be NACFB members, who are
regulated by our Code of Practice since 1992.
“All our members have
indemnity insurance. We offer protection to consumers at a time
when motor vehicle finance fraud has increased steeply.
“A lot of websites see finance products as a commodity.
But we should beware of moving away from our traditional
professional ‘birth to death’ service.”
