GE Money Motor Finance are working to reverse the downward trend in point of sale finance by leveraging their expertise in process management and training to help dealers to identify and realise opportunities to improve their performance. Rather than “cost out” their new approach is very much “value in”; it is an approach geared to help the business to stand out from the crowd, not just in finance but through a total business approach, it is an approach that is working.

Earlier this year the Finance & Leasing Association highlighted the continuing downward trend in finance cases from the point of sale, even though the wider consumer finance market has grown dramatically. Central to their findings was an apparent apathy towards, or perhaps lack of understanding of finance at the point of sale, both of its value and how to promote it effectively. An amazing 43 % of used car buyers and 30% of new car buyers reported that they were never even offered finance in the dealership. If the industry is to improve the situation action is vital, doing nothing is not an option if F & I as a key profit centre is to be sustained.

GE Money Motor Finance Managing Director Brendan Devine notes; “Over recent years the motor finance industry has reacted to the threat of increasing competition by seeking to improve efficiencies and by adopting a “cost out“ approach. The FLA’s detailed analysis of the total market clearly showed that these cost out approaches have not addressed the slide in point of sale finance volumes and that an alternative approach is essential”

In assessing the options available to boost finance sales, the business realised that there are opportunities to help dealers not only to use finance to create sales, but also to help dealers in a wider approach to review their total approach to business in terms of process management and maximising customer lifetime value; Brendan observes:

“Candidly as an industry, motor finance suppliers have too often focused solely on finance, yet dealers face other wider business challenges where our independent approach and worldwide expertise can be used to help. Certainly we can help in equipping dealer personnel with the skills and knowledge and above all confidence to promote F & I effectively in what is an increasingly complex legal framework, but we can also help to identify ways to improve their total business performance and maximise opportunities to operate more effectively to meet the customers needs, saving money, improving customer focus and building strong dealer reputations. In our market, a number of players have withdrawn their added value training and support programmes to reduce costs; we believe this short term approach is not benefiting the dealer, consumer or finance sector. GE Money Consulting has been developed not only to assist with training, but importantly to help in developing more effective processes that work for both the dealer and consumer to create win win situations”.

Across the world GE is renowned for its commitment to Six Sigma process improvement techniques and these have been used to give the business a significant competitive advantage. GE Money Consulting leverages these skill sets, adapting them to the needs of the UK motor retailing arena to provide pragmatic, ongoing support to dealers in delivering an approach covering both F & I and integrating with general dealer management issues to provide an “outside in” perspective. The goals are simple to:

The principle is to attract more customers and then to retain them, ensuring that the buying experience creates customers who so enjoy the whole car and finance buying experiences that they act as ambassadors for the dealership amongst their family and friends.

The consultancy team principals have over 35 years experience in working directly with the motor retail sector and can access additional GE resources to help dealers meet specific challenges as appropriate and have successfully worked on similar programmes in GE’s Irish business over recent years having worked with both dealers and manufacturers with great effect . Typical of some of the current activities are:

The GE Money Consulting team are happy to offer free advice and consultations, to establish how they can help individual dealerships to develop.

The model below outlines the whole principle in which dealer and GE Money Motor Finance can work together to create a great buying experience, based around mutual trust.

The initiative has certainly proven to be most welcome as Alex Merricks, Dealer Principal of Harwoods of Chichester, says,
"The GE Money Consultancy team have been working with us for three months and in that time have demonstrated a real understanding of our business and wider motor trade issues. In this relatively short time they have been instrumental in re-modelling the integration of F&I into our sales process and this has already resulted in a discernible turnaround. I would happily recommend their services to the retail motor industry"

In closing Brendan notes; “To reverse the declining trend in point of sale finance dealers need robust and repeatable sales processes which optimise profitability and customer retention. Our consultancy team have a proven ability to deliver bespoke solutions through close collaboration with dealer sales staff”

Further information - GE Money (UK) Media Relations:
Robert Buller - 020 7853 1831 Email: robert.buller@ge.com

GE Money

GE Money is the new trading name of GE Consumer Finance (GECF), one of the world’s leading consumer finance services to consumers, retailers and auto dealers. Headquartered in the US, GE Money operates in 48 countries around the world and has assets worth over $150 billion.

GE Money – has an active corporate citizenship program and is committed to making a difference in our local communities

In the UK, GE Money offers credit cards, fixed-term retail credit, loans, and auto finance. GE Money also operates retail branded credit cards for fashion retailers, department stores and supermarkets. Further information about GE Money can be found at www.gemoney.co.uk .