Bank of Scotland Dealer Finance launch system to help customer retention

March 2007

Bank of Scotland Dealer Finance has launched Remote Business Manager, a new and exciting initiative which provides dealers with F&I commission from customers who might otherwise choose to acquire funding from a direct lender.

Remote Business Manager could be deemed revolutionary and could dramatically improve income from repeat business. As a customer prepares to change their car and calls Bank of Scotland Dealer Finance for a settlement figure, the Remote Business Manager contacts the dealership to find out if they have the customer's finance provision in hand or if the retailer would like Bank of Scotland Dealer Finance to contact the customer and make an approach.

Bank of Scotland Dealer Finance will find out if the dealership has asked for the customer's settlement figure or if they have proposed a finance solution to the customer. If the answer is 'yes', and the transaction is in hand, then no further action is taken, otherwise the Remote Business Manager steps in to help, using terms pre-agreed with the dealer.

Paul McGill, Senior Director of Bank of Scotland Dealer Finance, said, "A large majority of dealers' customers are researching their finance before they step into a dealership, action needs to be taken by automotive retailers and the motor finance industry to ensure F&I income is secured. One reason for this trend is that savvy consumers are much more aware and thanks to the internet, can easily shop around to find what they think is a good deal. For dealerships, this often means that they are effectively cut out from the motor finance decision-making process by the lure of the direct lender. Bank of Scotland Dealer Finance's Remote Business Manager is a logical progression for its supporting dealers and the motor industry."

It is near on impossible to sell motor finance to a customer who has already entered into an agreement with a direct lender, and means that most dealers can't rely on repeat business from returning customers quite as much as they did ten years ago – putting a considerable squeeze on income.

Assuming the customer chooses a Bank of Scotland Dealer Finance product and returns to the dealership for their next car, the retailer will receive full commission as a reward for selling a vehicle – despite hardly having to lift a finger to sell the finance. By reaching the customer at the settlement request stage when they are likely to be merely thinking about replacing their vehicle, it is probable that a search of the direct lenders hasn't taken place. This means that the dealerships are, through Bank of Scotland Dealer Finance, beating the direct lenders to first contact with the customer and putting themselves as first port of call in the sales process.

There is also the potential for even higher commission for FSA authorised dealers, thanks the Remote Business Manager's ability to sell insurance products too. Again, Bank of Scotland Dealer Finance has developed an industry-changing service that can help keep dealerships one step ahead of the direct lender competition.

Press contacts: James Crawford or Nancy Jones on 0161 236 2277 or email firstname.lastname@bisslancaster.com

Notes to editors

Bank of Scotland Dealer Finance is committed to supporting UK dealerships with a comprehensive support package that includes point of sale consumer finance and insurance products, bespoke training, dedicated field personnel, database management, dealer stocking facilities and marketing expertise.

It funds around 500,000 vehicles in the UK and has successful business relationships with more than 3,000 dealerships, providing some £300million of stock funding to supporting dealers.