18 January 2016

The views of Black Horse chief Richard Jones on the subject of the captive finance house model as reported in Agenda are, I’m guessing, likely to resonate with many in the auto retail industry. His take on the influence exerted by car makers is not one you’d be wise to easily dismiss.

It’s fair to say that the auto retail business is a complex one, and that observation is also true of the relationship between retailer and car manufacturer. The image projected to the buying public is one of trying to deliver the best experience at the best price. The notion that retailers are under considerable pressure to offer potentially less than competitive financial products is unlikely to instil confidence in consumers.

Plus, with so much financial information readily available in the public domain, buyers increasingly have already conducted their research and know exactly what they want, from a car’s specification to the optimum payment plan. If you can’t deliver on the latter they are likely to walk. Result: no deal. That scenario benefits absolutely no one, and one that should convince even the most blinkered car maker to reassess its policy regarding the use of in-house financial products. 

Iain Dooley

Editor, Agenda

Auto Retail Network

Tags: Black Horse, captive finance house, conflict, finance, manufacturer, OEM, pressure