V12 Vehicle Finance (V12VF) - powered by Secure Trust Bank - Financial strain is a burden facing many dealers in 2022. How can that strain be relieved?
As the world is reacting to yet another variant, covid continues to influence markets and decisions and the automotive industry remains among the hardest hit. While the picture is improving and car dealerships are getting busier, many dealers are eagerly seeking more inventory to sell, leading to extensive financial strains.
In the current market, it's no surprise that a third of UK adults have struggled financially during the pandemic, leading to tighter purse strings, reported The Guardian. With more uncertainty ahead, precautious spending is likely to continue. As drivers set their sights on affordability, the demand for used vehicles has soared, particularly for those that are four years old or younger.
The increased demand for used vehicles combined with supply shortages have caused used vehicle prices to spike. Auto Trader's latest Retail Price Index shows used car prices increased by 30.5% year-on-year (2021 vs 2020) and with one in four nearly new cars being priced above their new equivalent. This shows that stock shortages continue to affect the industry and push prices up. This will lead to an increased consumer reliance on finance, and from a dealership perspective, the increased need for options to continue to buy stock to keep up with the demand on the market.
So, what does this mean for your business? Due to the current pressures, the timing of dealers decisions and actions is critical. If dealers buy when price values are high but then the bottom falls out of the market, dealers could suddenly be left holding a considerable sum of over-priced stock.
This has become a long-term trend that will take time to correct itself. According to Car Dealer Magazine, recovery time is estimated to be years rather than months to finally fall back into any kind of status quo as dealers knew it pre-pandemic.
In short, dealers are operating in a very complex landscape. Whilst requests for used cars rise, dealers need financial support to fund their forecourt in an increasingly demanding market, but how?
Stock funding plans are designed to allow independent and franchised dealers to invest in used car and van stock. V12VF stock funding enables dealers to stock their forecourt and keep up with demand. Here are some of the benefits.
100% Hammer Price
Relieve financial strain, fund more expensive vehicles and improve your cash flow. Get the funding you need with 100% of the hammer price on cars, WAVs and LCVs up to 3.6 tonnes (including auction and refurbishment fees).
Single Monthly Direct Debit
Make payments simpler and gain maximum transparency. With one single monthly Direct Debit for fees and interest charges, you can remain in control of your finances.
Get the stock you need for your forecourt. Supplying a single-funded value ceiling of £50,000 for independent dealers and £65,000 for our franchised dealers, you can fund more expensive vehicles.
Unlock Cheaper Loading Fees
Have more cash in your hands. With a maximum charge of 1% of the vehicle cost plus a cap of £99 per vehicle, you can save up to thousands per year.
Less Frequent Physical Audits
We perform a physical audit once a quarter and a digital audit every month when a physical audit isn't carried out. This means you get more time and freedom to focus on your business's plan for success.
Bank Backed Funding
As part of Secure Trust Bank, you can trust that your funds are secure. We can also generally fund more vehicles than the usual lender - from private sales to auctions.
If you want help navigating the ever-changing landscape to ensure you keep up with demand, find out how V12VF stock funding products can help your dealership to thrive.