A global and increasingly competitive market
The vehicle financing market is an extremely competitive market and the different market players must constantly renew their offer in order to satisfy increasingly demanding customers.
In a difficult economic environment, vehicle manufacturer captive finance houses and independent finance companies activate the same growth drivers in order to increase their activity and margin, by:
- Offering special packages including financing, insurances and services, in particular in the renting sector (lease-option or full service rental);
- Developing business customers, especially via the rental business;
- Strengthening the international activity of the captive finance companies, in particular through the development and growth of some of them in emerging countries.
In this context, market players need technology partners who are able to support them in the creation of new business offers as part of a worldwide deployment.
Increasingly complex financing channels
So far, vehicle manufacturer captive finance houses combine two types of computer tools. On the one hand, they equip their dealers and retailers (effectively playing the role of brokers) in order to offer their final customers retail financing facilities in the form of asset finance and leasing solutions. On the other hand, they equip themselves with one or more wholesale financing management tools. These include, of course, Floor-Plan financing for new and second-hand vehicles, but may also come in the form of medium-term loans granted to finance dealer’s investments (works, expansions etc.), spare parts (e.g. factoring), leasing contracts for company cars, mortgages…
In summary, the financing channels of the vehicle distribution network have reached an unprecedented level of complexity for the car manufacturers and their captive vehicle finance companies, which now play the role of real “banks for dealers”. Some of them now take charge of the direct flows between the car manufacturer and its network, regardless of any funding, acting as a true current account manager.
Admittedly, this variety of flows is a constraint for industrials, captives and distribution networks but it may also become an opportunity, provided that all financing and flow management issues are handled as a whole and designed around embedded software suites combining retail and wholesale financing as well as account management channels.
Linedata’s offer at the heart of the business strategy
Linedata supports these market players around the world with two well-known software packages:
Linedata Ekip 360 and Linedata Profinance, through their Distribution and Management systems.
Thanks to the comprehensive functional coverage of our software solutions, you will be able to offer financing solutions adapted to the needs of your Retail and Wholesale financing activities:
- For the financing activities of your end-user clients: secured loan, lease with option to purchase , financial lease, full service rental , fleet management, services contracts ;
- For the financing activities of your distribution networks: secured loan, rental of courtesy (or replacement)vehicles, single stock financing (new vehicle, demonstration vehicle, second-hand vehicle, spare parts and accessories), revolvingcredit lines, management of current accounts.