Asset finance software provider Linedata has
predicted a rise in both the penetration of car finance and the
number of different finance streams connecting carmakers’ captive
finance providers with their retail networks.
The company said it expects new consumer
trends such as the increasing popularity of mobility cards,
electric vehicle (EV) finance and battery rental schemes to
increase the complexity of captives’ involvement with
retailers.
Go deeper with GlobalData
Talking to Motor Finance, Pascal
Martinez, leasing and credit sales manager at
Linedata, said captive finance companies were centralising
increased and varied flows between carmaker, dealer and customer
“on top of the traditional floor planning activity used to manage
new vehicle stock.”
This has given captives the “preferred
position” to capitalise on emerging revenue streams and act “like
banks, providing more than just stock finance and developing direct
business with dealers,” according to Martinez.
EVs and mobility
For example,
RCI Financial Services, the UK lending arm of the global
Renault-Nissan captive RCI Banque,
which has seen finance penetration rise in the start of the
year, will be leasing the batteries in the manufacturers’
new range of EVs.
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By GlobalDataSuch schemes, said Martinez, will be “using
direct debit with customers through the captive.” Maintenance of
the battery offers another revenue stream with “the finance company
again in the middle of this.”
According to Linedata, mobility schemes for
short-term rental have also risen in popularity, managed on
point-scoring cards.
“Somebody will have to pay for a
points-scheme,” said Martinez, “and somewhere the dealer will use a
direct or credit account, which will be managed by the finance
company.”
An interview with Steve Gowler of RCI
Financial Services and extended comments from Pascal Martinez will
appear in the
June issue of
Motor Finance
magazine.
richard.brown@vrlfinancialnews.com
