Paul Burgess
Startline chief executive Paul Burgess
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NEW products are needed to maximise the potential of PCPs in the used car sector.

Startline Motor Finance said the penetration of PCP in the used sector still trails new cars by some distance, so that there remains potential for very worthwhile growth.

Chief Executive Paul Burgess said: “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.

“However, 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.”

Burgess said that new approaches could be created based on everything from how used car PCP products were sold through to the people at which they are targeted.

“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.

“Really, the motor finance sector needs to look at how to meet these needs, especially given the speed with which the macro economic picture could change over the next year or two.”

Startline recently launched its own PCP product that is designed to be offered by dealers alongside products from traditional prime lenders and suggested as an alternative source of funding when applicants are declined.



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