The Retail Motor Industry Federation (RMIF) is
looking into setting up a “standalone motor finance industry
facility”, it announced.
The “car dealer bank” would provide
“ring-fenced” finance for car retailers’ customers, as part of a
plan to help “dispel misconceptions over the availability of
consumer credit”, the RMIF said.
The facility could be managed in conjunction with a bank, said
the federation, and would only be open to RMIF members, “ensuring
its future financial risk credibility.”
Rob Foulston, chief executive of the RMIF commented: “The
current economic situation has made it clear that the retail motor
sector would benefit from having its own source for consumer
finance. While credit is available, this additional resource can
only be of benefit to the industry.
“By having its own finance house, the retail motor sector will have
control over its own finance, and be able to market this
directly to consumers and businesses.”