“If it appreciates, buy it. If it depreciates, lease it.” Paul Getty
Mobile phones today are incredible things. They no longer just make calls, you can text, email, scan the web, download games and so much more. They are credited with changing the way we communicate, reducing the patience of customers seeking responses from business and, some say they are even changing our mindsets about purchasing. Why? How?
Well, very few people buy their phones outright, many lease purchase them as part of a contract and this is spreading towards a greater acceptance of taking out finance or leasing products. This includes cars.
Cheap finance, in particular “Personal Contract Plans (PCPs)” account for over 80% of car sales. Yet, how many customers know what they are buying?
Do customers really understand the difference between Hire Purchase, Personal Contract Purchase and Personal Contract Hire, to name just a few options? The answer is that many may not and this, therefore, could cause problems.
In 2013, the Financial Conduct Authority (FCA) took over regulation of many finance products, including car finance. Their objective is to ensure that all customers are treated fairly.
In the same year, Adlabs were approached by Fiat Chrysler Automotive to help develop a training programme and assessment procedure to ensure their customers were treated fairly, being able to make educated finance decisions. Working with the industry body (the Institute of the Motor Industry), we helped develop, pilot and go on to deliver the first accredited assessments.
What’s more, sales staff that went through the programme discovered that it not only provided them with a robust finance process but built greater relationships with customers and sold more cars!
Today we continue to work at the forefront of car finance sales development.