PCP get-out offers sales opportunity for dealers
In an innovative move, Exchange and Mart has launched Payment Swap, a mechanism that offers a way out for car buyers who have PCP schemes secured on cars they no longer want or need.
How will it work?
Backed by Exchange and Mart’s parent company Newsquest, Payment Swap is an online service (at www.paymentswap.co.uk) which manages the whole transaction. Customers trade-in their current vehicle, the existing finance agreement is settled and a replacement package is arranged so that the buyer can then obtain a replacement vehicle.
Although PCP has re-energised sales of new cars to consumers since it was introduced, the plans are often expensive or difficult to get out of should a customer’s circumstances change before the agreement expires. Payment Swap offers an opportunity for owners who feel trapped in an arrangement with a car that no longer suits their needs and will be thankful for a simple way out.
Getting a new car through Payment Swap is a simple process. Customers enter just three pieces of information – their monthly payment amount, car registration number and postcode – and are offered a range of replacement vehicles. They can choose the same monthly payment as before or a lower one, offering a valuable option to people whose financial circumstances have changed but who still need a reliable car.
Has it been tested?
The system was trialled by 60 dealers and car supermarkets before the launch and is said to be fully FCA compliant. Dealers can sign up to be a provider of replacement vehicles through the Payment Swap website.
Exchange and Mart, and more than 200 other websites and newspapers run by Newsquest Media Group, will be advertising the service heavily, so it offers a valuable marketing channel for dealers.
If the implementation works well it will offer an additional way to entice buyers into new deals. The latest figures from ASE revealed that the average loss experienced by car dealers in May was £17,000, up from £10,000 for the same month last year, although May is a historically low month for sales.
New sales channels such as Payment Swap will therefore be welcomed by car dealers and garages.