While new car sales have declined in recent months, the loosening of lending criteria paired with a newfound wariness of public transportation is pushing Australia into a sweet spot in terms of demand for vehicles; “some experts even believe that the pandemic may spur further sales”, with the secondhand car market having already taken off.
According to Liberty group sales manager John Mohnacheff, the space is rife with broker opportunity – potential the lender is more than ready to support.
“While new car sales have declined, much of this can be attributed to difficulty securing appropriate finance as well as the limitations around visiting dealerships, test-driving cars and availability of new vehicle stock,” Mohnacheff explained.
“However, Australians have a long-standing love of cars and customer demand for vehicles remains strong. As lockdown restrictions ease and we move towards the new COVID normal, many buyers are keen to pick up where they left off and finally secure that car they’ve been dreaming of.”
As Mohnacheff sees it, motor lending is an invaluable addition for any broker looking for new ways to service their existing database
“We know that customers look for convenience, and being able to offer a broad suite of services is likely to be a key drawcard to get new customers in the door,” he said.
“And, when supporting them with applications, it never hurts to ask about what other finance they might be considering – now or in the future. Around 25% of people who refinance or buy a house will change over their car, and a simple question really can lead to a host of new possibilities.”
Liberty is well-suited to facilitate such diversification given its new customer verification identification options which enable the group to provide entirely digital motor finance, a capbility that is not only COVID-safe, but carries exciting implications in terms of scaling up in the future.
“This improvement has been extremely well-received by our business partners, particularly those servicing areas still impacted by lockdown restrictions,” Mohnacheff said.
“For other brokers, the change has helped them to support customers from a significantly larger geographical area. Being able to service customers virtually when they are unable to meet in person means that brokers can cast a much wider net.
“This can be a huge advantage to any business and will benefit brokers well beyond the pandemic or any lockdown restrictions they may face.”
With 90% of car purchases currently arranged through finance, Mohnacheff feels brokers are doing themselves a disservice if they choose not to expand into the space.
“For brokers new to motor lending, we understand that some of their reluctance stems from a lack of awareness around how simple it is to get started, but it’s easier than you might expect,” he added.
“We can walk you through the process from start to finish, and our BDM team are always on hand to answer any questions you might have along the way.
“With a simplified submission platform, electronic document signing and digital ID verification, it has never been easier to get customers into a new or used car,” Mohnacheff said.