Three account managers walking towards the camera

With more used car and van dealers preferring unit stocking finance to purchase vehicles for forecourts, we have announced plans to expand our stock funding team to help dealers grow their businesses.

In our recent survey, we found that of the 100 dealer representatives asked, almost 50% (49.5%) now prefer to use unit stocking finance (sometimes known as stock funding or stock finance) to purchase vehicles for their dealership, up 10% from 39.74% in 2022.

In response to the upswing and to help dealers get the unit stocking finance facility they need, we have announced plans to expand our stock funding team.

Over the course of this year, we will be appointing stock funding business development representatives across the UK. This means dealerships of all shapes and sizes across the UK will have a dedicated representative to help them take advantage of stock funding and ease their cash flow demands.

Sean Ryan, our UK Stock Funding Sales Manager, said: "Both through the feedback we gather anecdotally from our customers and our dealer market research survey, we know that the appetite for using stock funding is growing. This is why we're investing in our team, to spread awareness to dealers about the benefits this type of finance offers, helping dealers fulfil their ambitions, and ensuring that they get a quality service from V12 Vehicle Finance.

"Through our survey, we've heard what dealers want, and we're different in that our stock funding facility doesn't just cover the hammer price of the car at auction, as it can also be used for the auction fees, delivery fees, repair fees and VAT. Not only do we fund auction purchases, but we will also fund private purchases, part exchanges, and any other trade sales. This gives complete flexibility to the dealer. It can also be used for light commercial vehicle purchases, so dealers wanting to expand their forecourt offering can do so."

Dealer handshake image

Besides finding that dealers now have a stronger preference for using stock funding over their own cash, our dealer survey has also found that interest rates are reportedly the most significant challenge that dealers are facing, with nearly a third asked citing it as a key issue. Sean believes that flexible, competitively priced stock funding facilities are critical to helping dealers and offering further benefits to ease cash flow and streamline the dealer's business operations.

"We understand the market has been somewhat turbulent over the past couple of years, and we have been striving to support our partnered dealers through these times. One thing that is unique to us is that we offer both consumer finance and stock funding with no link between the two products, giving dealers complete freedom to run their business how they see fit. Whilst this has always been our practice, it is even more important in current times due to regulatory guidelines such as consumer duty.

"This is why we've structured our stock funding facility to be flexible for dealers, unlike other credit lending alternatives in the market. With our stock funding product, dealers can treat it almost like a credit card, as we charge interest on the amount borrowed. Once a dealer is approved with V12 Vehicle Finance stock funding, they can use it to fund as few or as many vehicles as their facility allows. We also don't dictate where dealers can source their cars from. They can use it whenever they like, however they want.

"Besides that, dealers can speak to us about the terms of their stock funding facility to meet their specific needs. We can offer stock funding facilities (to a range of dealers, whether you're a startup, a car supermarket, a franchised or anything in between). We also often have exclusive deals with a number of the auction houses we work with, like zero per cent interest periods and digital integrations, which means much slicker processes, allowing dealers to focus on other areas of their business."

Find out more about our stock funding here