Fresh finance products needed to drive used PCPs

New finance products are needed to maximize PCP sales penetration, according to Startline Motor Finance chief executive Paul Burgess.

“There has been rapid expansion of used car PCP in the last few years and probably something like 40% of used car motor finance is now PCP-based. This is a high level but is still some way behind the new car sector. A fact which probably, in itself, is an indication that there is potential for even more used car PCP,” said Burgess.

“The variety of used PCP products available is quite limited and to maximise that potential, we need to see a greater level of innovation with more PCP products that are based on the particular needs of used car buyers,” he said.

Burgess called for a ‘new approach’ which would examine everything from how PCPs were sold through to the people they were being targeted at.

“So far, almost all used PCPs have been based on a one-size-fits-all approach but, arguably, the diversity of buyers and needs in the used sector is even wider than new,” he said. “Really, the motor finance sector needs to look at how to meet these needs, especially given the speed with which the macroeconomic picture could change over the next year or two.”