20/05/2014
Close Brothers Motor Finance: Powering Vehicle Sales in the UK
In the dynamic world of automotive retail, securing the right finance is paramount for both dealerships and customers. Close Brothers Motor Finance has established itself as a significant player in this sector, offering a comprehensive suite of financial solutions designed to drive sales and enhance customer satisfaction. With a rich history spanning over three decades, and as a proud part of the London Stock Exchange-listed Close Brothers Group, the company brings a wealth of experience and a robust reputation to the market.
At its core, Close Brothers Motor Finance aims to empower its partners – the car dealerships – to achieve greater success. Their mission is clear: to help dealerships sell more vehicles, to more customers, more frequently. This is achieved through a combination of innovative finance products, dedicated support, and a deep understanding of the automotive industry's unique challenges and opportunities. For consumers, this translates into accessible and flexible ways to finance their next vehicle, making the dream of car ownership a tangible reality.
The Close Brothers Group Advantage
Being part of the Close Brothers Group provides a significant underpinning of strength and stability. Close Brothers is a diversified financial services group with a long-standing history of providing banking, securities, and wealth management services. This affiliation means that Close Brothers Motor Finance benefits from the group's substantial financial resources, its commitment to ethical business practices, and its established presence in the UK financial landscape. This backing allows them to offer competitive rates and reliable services, instilling confidence in both their dealer partners and the end customers.
Tailored Finance Solutions for Dealerships
Close Brothers Motor Finance understands that a one-size-fits-all approach rarely works in the automotive sector. They work closely with dealerships to develop bespoke finance packages that align with their specific business models and customer demographics. These solutions are designed to:
- Increase Conversion Rates: By offering attractive and competitive finance options, dealerships can significantly improve their chances of converting browsing customers into paying buyers.
- Boost Average Transaction Value: Flexible finance can enable customers to consider higher-specification vehicles or additional products and services, thereby increasing the overall sale value.
- Enhance Customer Loyalty: Providing a smooth and positive finance experience contributes to overall customer satisfaction, encouraging repeat business and positive word-of-mouth referrals.
- Streamline the Sales Process: Their technology and support systems are geared towards making the finance application and approval process as efficient as possible, freeing up sales staff to focus on customer engagement.
The company offers a range of finance products, including:
- Hire Purchase (HP): A popular option where the customer pays a deposit, followed by fixed monthly payments over an agreed term. At the end of the term, after the final payment, the customer owns the vehicle.
- Personal Contract Purchase (PCP): This offers lower monthly payments compared to HP, as the customer effectively defers a portion of the vehicle's value to the end of the contract in the form of a Guaranteed Future Value (GFV). At the end of the term, customers typically have options to return the vehicle, part-exchange it, or pay the GFV to own it outright.
- Leasing: While less common for direct consumer sales from dealerships compared to HP and PCP, leasing can be an option for business users or specific fleet arrangements.
Empowering the Customer Journey
For the consumer, the process of buying a car can sometimes be daunting, particularly the finance aspect. Close Brothers Motor Finance strives to demystify this process and make it as transparent and user-friendly as possible. They aim to provide customers with the means to afford the vehicle they desire, often with options that suit varying budgets and financial circumstances.
Key benefits for customers include:
- Competitive Interest Rates: Leveraging their strong market position, they can often offer attractive rates.
- Flexible Repayment Terms: Customers can often choose repayment periods that best suit their financial planning.
- Range of Vehicle Types: Their finance solutions are typically applicable across a wide spectrum of new and used vehicles, from small hatchbacks to premium SUVs and commercial vehicles.
- Transparent Agreements: Clear terms and conditions are crucial for building trust.
Technology and Innovation
In today's fast-paced digital environment, technology plays a crucial role. Close Brothers Motor Finance invests in sophisticated systems to support its partners and their customers. This includes online proposal systems, quick decision-making tools, and platforms that provide real-time updates. These technological advancements are vital for:
- Speed and Efficiency: Enabling faster approvals and reducing waiting times for customers.
- Data Security: Ensuring that sensitive customer information is handled with the utmost care and compliance.
- Reporting and Analytics: Providing dealerships with valuable insights into their finance performance.
Commitment to Responsible Lending
As a regulated financial services provider, Close Brothers Motor Finance operates under strict guidelines to ensure responsible lending. This means they are committed to assessing affordability and ensuring that the finance products offered are suitable for the individual customer's circumstances. This commitment protects both the customer and the integrity of the financial market.
Frequently Asked Questions
What types of vehicles can be financed?
Close Brothers Motor Finance typically offers finance for a wide range of new and used cars, vans, and motorcycles. Specific eligibility may vary depending on the dealer and the vehicle's age and condition.
How do I apply for finance?
Applications are usually made through a franchised dealership. The dealership's sales team will guide you through the application process, which often involves completing a proposal form with your personal and financial details.
What credit history is required?
Eligibility for finance depends on a credit assessment. Close Brothers Motor Finance works with customers across a range of credit profiles, but approval is subject to their underwriting criteria.
Can I settle my finance agreement early?
Yes, most finance agreements allow for early settlement. There may be a small penalty or a statutory rebate applied, depending on the specific agreement terms and regulations.
What happens at the end of a PCP agreement?
At the end of a Personal Contract Purchase (PCP) agreement, you typically have three options: return the vehicle, part-exchange it for a new one, or pay the Guaranteed Future Value (GFV) to own the vehicle outright.
Conclusion
Close Brothers Motor Finance stands as a key partner for the UK automotive industry, facilitating sales and providing crucial financial solutions. Their extensive experience, coupled with their strong backing from the Close Brothers Group, positions them as a reliable and effective provider. By focusing on the needs of both dealerships and consumers, they continue to play a significant role in helping people drive away in their desired vehicles, supported by finance options tailored for the modern market.
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