Auto Trader to offer Dealer Finance service which uses Codeweavers technology
Auto Trader is offering dealers the opportunity to advertise their finance deals on used and new cars for free until early 2018. It will also launch a facility to search by monthly payments in the first half of 2017.
Trevor Mather，CEO of the online classified giant，confirmed the site is keen to attract a critical mass of dealers offering finance packages before it moves to monetise the facility. He also confirmed that Auto Trader has no plans to launch its own finance offering，contrary to some reports circulating after it achieved FCA permission to provide regulated services and products earlier this year. Dealer Finance，which uses Codeweavers technology，has been piloted on the site since July and provides dealers with the opportunity to promote their point of sale finance to car buyers.
Around 35,000 adverts currently feature monthly finance payment options. Cars priced under £2,000 or over 12 years old are excluded from the service.Mather said the service will give dealers the opportunity to compete with banks returning to the car finance sector after the financial downturn.
Dealer Finance is still in trial mode and it’s being used by 500 dealers. Auto Trader will run it as a free service until early 2018. They see it as a way of reducing consumer pain while allowing dealers to compete against the unsecured loans that consumers are getting from the banks because they don’t realise dealers offer better secured offerings. Auto Trader expects the service to boost dealer penetration of used car finance which it said is only tracking at around 25-30% across the sector.
Clearly there’s a large segment of the car buying public that takes out loans to finance their used car purchases.
Mather also moved to dismiss suggestions elsewhere in the trade press that Auto Trader would offer its own finance.
We have no plans to provide finance on the Auto Trader website. It’s a rumour; it’s not true. We will help dealers sell their finance.