Motoring group the AA has said it will not tie its personal loan products to its online car retail service launched earlier this month.

Begun on 9 July, the Association claimed its online retail portal would be "one of the most powerful car selling brands in the market," available to the AA’s 15 million members, as well as promoted through the group’s website and Route Planner.

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Speaking to Motor Finance, Edmund King, president of the AA, said the ethos of AA Cars would be to encourage customers to research purchases and take on board all advice, and not promote "any particular retail car finance".

King added although AA Financial Services do offer loans, these would not be promoted through the retail website. "We just advise buyers to check out all options," he said.

Balances and checks

The website model works on the principle of "putting buyers in touch with sellers," split 70% franchised, 30% independent, explained King, and presenting more than 110,000 used cars for sale from over 2,000 UK dealerships as well as offering car buying advice and providing a car history check.

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"For dealers, this represents a unique opportunity to associate their business with the trusted AA name," said King. "For consumers, the AA has simplified car buying by offering a portal that offers access to thousands of cars in their own locality."

According to a Populus survey in May on behalf of the Association, 60% of 22,194 AA members polled online were considering a car purchase at present, with one in three respondents saying they felt car buying to be stressful and one in eight saying they had made a mistake in the past with a purchase.

King said dealer finance was a regular facet of car retail which would show up in an AA Cars History Check and was "not generally a concern for consumers". Recently, automotive data provider HPI warned of the risks to traders in particular of outstanding finance on used vehicles.

Further comment by Edmund King and analysis of AA Cars will be published in the August issue of Motor Finance magazine.

richard.brown@timetric.com