The number of cars purchased for cash is steadily declining. Monthly instalments, which used to cover only the price of the car, now often include a range of additional services, such as a service package, wheel replacement or a fuel card.
This creates enormous potential, which consists of:
- easier upselling of car equipment options and maintenance services by spreading their price over monthly instalments
- realising margins on financial services.
In addition, modern forms of financing increase customer loyalty and the chance of repeat car purchases (using so-called End-of-Term activities).