Response to latest SMMT figures_20191021081242236
Commenting on the latest SMMT figures, Steve Wishart, Head of Lending, Callcredit Information Group, said: “The drop in new car registrations in September is perhaps unsurprising given the uncertainty around levies on diesel cars combined with weaker consumer confidence and a general cooling of the economy. It is important car finance providers and the dealers they support don’t have a knee jerk reaction to today’s numbers. It may be tempting to take a shortcut in the sales process by speeding through or failing to make sufficient affordability checks during more challenging market conditions but, this could easily lead to a rise in unsustainable household debt.
“Car finance providers need to implement thorough affordability assessments by drawing on a wide variety of data sources and using enhanced checks to determine credit worthiness. It is possible to achieve this without affecting the customer experience through smarter use of technology.
“Some subtle improvements can demonstrate a true measure of a buyer’s ability to afford car finance and help consumers to better manage their financial health.”