As demand for prestige cars stays high and
interest rates stay low, car finance brokers are keen to step
outside regular consumer business channels to offer variable rate
products on high ticket vehicles.

DSG Financial Services is the latest to focus
on the product, launching new brand DSG Prestige last month on the
back of a new broker facility agreed with ING Lease (UK).

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The DSG Prestige website features an online
calculator for variable rate finance, which managing director
Richard Hoggart says is “still by far
the best method of funding a big balance for this type of
buyer.”

Variable rate allows dealers to sell finance
at low rates while still gaining good commission since it is based
on LIBOR, which remains low at present.

Finance agreements valued at more than £60,260
(or more than £25,000 if a customer can prove they will use a
certain proportion of mileage on business use) are eligible for
variable rate deals, since they count as business purchases and are
thus no longer regulated by the consumer credit directive.

Another broker, Bridford Financial Solutions,
has been introducing large amounts of variable rate business to ING
Lease.

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The prestige finance specialist, which
launched its own online calculator for variable rate deals in
December, experienced rapid business growth in 2010 and expects
increased demand this year to take its annual business volume from
£30 million to £40 million.

Bridford owner Tim Marlow commented: “People are taking
advantage of the low rates. Dealer group finance houses and banks
simply aren’t offering the flexible, variable rate products like us
so we are able to provide a more competitive and tailored route to
secure sales.”