ASIC enforces regulation changes to finance in the Motor Industry
November 1st is the official compliance deadline for the new rules set by ASIC
It’s no secret that Australia is awful at financing vehicles at the time of purchase. Go Auto News just reported that Australia sits around the 20% conversion whilst the US and UK often convert 80% of vehicle sales into finance deals. If flex commissions are the root cause we have a major opportunity to increase profits per sale by tapping into the lost finance deals going straight to banks.
EasyCars Dealers can breathe easy about ASIC’s regulation changes. We have partnered with three finance Companies that focus on technology, automation and everything to do with finance in the Motor Industry. We have pushed the responsibility back on these finance companies, so our dealers can start benefiting.
These finance companies have been instructed to help dealers sell more cars, convert more finance deals, improve the customer’s user experience and automate the whole finance process making the deal seamless. This won’t happen overnight but step one is complete.
The new finance regulations make it clear that dealers cannot offer rates themselves. This makes it difficult to attract and start the finance thinking at the beginning of the purchase process … not anymore.
The first step is now complete!
All 3 finance companies have created an automated Finance Lead Generator for websites. Basically, this is an automatic calculator that sits on your webpage or iframe that calculates a weekly repayment figure based on the vehicle price. We already have statistics demonstrating that this is producing leads for dealers.
You can view a working calculator at e.g. www.automotivewarehouse.com.au
Step two is in development
The three finance Companies are creating automated finance applications, so buyers can submit their applications online 24 hours seven days per week.
To get involved and take the journey simply sign up with one of these finance Companies.
All 3 finance companies have their individual forte and it’s up to you to decide on what’s important to your business.
Drive On says they’ll
Make you more commissions than ever before
360 Finance says they’ll
We will work longer hours and get quicker replies than ever before
Credit One says they’ll
Get more deals over the line than ever before