Bank of Scotland Dealer Finance makes wholesale changes to wholesale funding scheme

April 2006

Bank of Scotland Dealer Finance has radically overhauled its wholesale funding scheme and enhanced its stock locator vehicle acquisition service in a move it believes will create more income for dealerships and improve the quality and availability of remarketed vehicles available to them.

Wholesale Plus, as the new scheme is called, changes the way dealers are able to finance their stock. Coupled with a stock locator scheme offering access to hundreds of vehicles each week, including ex-Bank of Scotland Vehicle Finance (Bank of Scotland Approved) fleet vehicles. Wholesale Plus means that dealers are now able to find, fund and purchase vehicles online from one source.

In contrast to many other providers, Bank of Scotland Dealer Finance can now provide wholesale funding for dealerships even if it does not receive retail support on a regular basis.

Senior director Paul McGill comments: "Some dealers believe wholesale funding is simply a method to fund traditional used car stocks, whereas we have developed a very flexible system, which has been designed to help dealers stock a wide variety of vehicles. This can range from new unregistered vehicles, batch cars from manufacturers, rental, hire, courtesy and demonstrator fleets as well as auction and part-exchanged vehicles. Each category may have differing profiles and loan to value rates. This is a brand new approach to stock funding, which goes beyond the normal parameters of lending, offering far more flexible terms. It can also leave more working capital available for the dealer."

The Wholesale Plus scheme can advance up to 100 per cent funding of vehicles compared to the industry norm of around 80 per cent. The terms associated with funding have also been improved from 90 days to up to 180 days, while demonstrators, courtesy cars and some vehicles over five years old can be added to the stock funding plan.

For those dealerships using the remarketing plan to acquire ex-Bank of Scotland Vehicle Finance fleet cars, stock can be inspected through a fully interactive web portal. The cars are debited directly onto the stock funding plan, with an interest-free period and 100 per cent funding. Vehicles only need to be paid for once the stock is sold or at the end of the consignment period.

Says McGill: "The beauty of this Bank of Scotland Approved system is that dealers can view, purchase and fund vehicles in one transaction with delivery included, without moving from their desks."

He concludes: "We're completely re-engineering the way that dealers can finance used stock. Wholesale Plus is not only more flexible for the dealer, it also provides an alternative option for dealers who want to change their demonstration or courtesy car fleets, rather than being restricted to using their normal funding sources - a key benefit and just one of the many elements that sets the scheme apart."

Press contacts: James Crawford or Nancy Jones at Euro RSCG Biss Lancaster on 0161 236 2277 or email firstname.lastname@bisslancaster.com

Notes to editors

Bank of Scotland Dealer Finance is committed to supporting UK motor 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 motor dealerships, providing some £300million of stock funding to supporting dealers.