Quote:
Originally Posted by Umai Naa
How does this affect the dealerships, besides an obvious increase in stock flow?
Will it affect the profit margins on the cars themselves?
|
The basis of the finance opportunity swings around the $ per week/month for the consumer.
Presumably at that point, there will be a 'points based' pricing matrix, working on the cost of the base car, and the variant options... with a suggested retail margin. Like what happens now. What might be interesting to understand is if the retail margin actually increases for the dealer in this scenario.. or if it is fixed via recommended guidelines for pricing... all ACCC compliant of course
What has happened in other brands is that a factory-approved financing deal such as this style, sees a commission go to the dealership for initiating the deal, which is some form of compensation for the dealership losing the capacity to sell finance, insurance, warranty & aftermarket products to that customer.
Conceptually there if there will be more cars sold.. there will be an increase in the requirement for finance and insurance sales people, an increase in the number of cars that within the first year of ownership require servicing...
Or not... depends if they have their sums right..
What is also an unknown is what the competitor response might look like. The likes of Toyota Financial Services has the backing of the manufacturer.. as does Nissan's Nissan Motor Finance...
... but what of Holden or Ford or Mazda, who dont have their own local finance houses available to help weave such magic...