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Startline has launched a PCP for used car buyers who have been declined finance from prime finance provider. It said the product is being trialled by unspecified dealer groups.
Startline said the product can be offered by dealers alongside used PCPs from traditional prime lenders and suggested as “an alternative source” of funding when applicants are declined.
According to the finance provider the product is aimed at the 20% of used car buyers who arebelieved to be strong credit risks but often do not meet the requirements of prime lenders because of their work patterns or other socio-economic factors.
CEO Paul Burgess said: “This is an innovative development that could potentially open up PCP to a wider market that has previously been ignored by the motor finance sector.
“Used car buyers who have been rejected by a traditional prime lender but remain a highly credible credit proposition now have a PCP designed especially for their needs, accessing APRs and general terms similar to those offered by a prime lender.
“We believe that this product offers something different and valuable for both car buyers and dealers, especially as the new car market continues to fall and more attention turns to used. It is a unique PCP offering that very much reflects changing market trends.”
The new PCP is designed to form part of a three product range including the core Startline hire purchase product and Finishline, which was launched in June. The latter is designed to provide a further hire purchase option, being targeted at used car buyers who narrowly fail to meet the company’s primary lending criteria but are still good quality applicants.