Beginner’s Guide to Offering Finance on Car Sales and Repairs

Who Will Find This Guide Helpful?

Whether you’re a car dealer thinking of supporting your customers with payment options, a garage owner considering how to help with repair costs, or simply curious about car finance in the UK, you’re in the right place. We’ve written this so everyone, even total beginners, can feel confident about finance in the automotive world.

What Do We Mean by 'Offering Finance'?

Simply put, offering finance means giving customers a way to spread the cost of buying a car or paying for repairs over time, rather than paying everything upfront. It often involves working with a finance broker (like Kandoo) to offer loans or payment plans.

Why Does This Matter?

Let’s face it: cars and car repairs can get pricey! Here’s why finance is a game-changer for car sales and repairs:

• Makes cars and repairs more affordable
• Helps customers get back on the road sooner
• Can boost your business and bring in more customers
• Turns a big bill into manageable monthly payments
• Improves your customer experience and reputation

Many people would choose a dealer or garage who offers flexible payment options over one that doesn’t.

How Does It Actually Work?

Let’s break it down in a no-nonsense way:

1. You partner with a finance broker or lender. For example, Kandoo helps businesses like yours set this up.
2. You tell your customers about the finance options available.
3. Customers apply for finance through your broker’s quick and simple process. Many times, this is done online and only takes a few minutes.
4. If approved, the funds are paid to you and the customer pays monthly.
5. Everyone leaves happy – you get paid, the customer gets their car or repair!

A Day in the Life: A Real Example

Sarah runs a busy garage in Manchester. Last month, a customer needed a new clutch, but couldn’t pay the full amount right away. Sarah offered finance through Kandoo. The customer applied on the spot, got approved in minutes, and drove away relieved, knowing they’d pay off the repair over 12 simple monthly payments. Sarah’s local reputation grew, and she noticed more customers asking about finance options.

Car Finance Jargon Buster

Let’s untangle some common finance terms:

TermEasy ExplanationAPRThe yearly cost of borrowing money (as a %)BrokerThe middle-person who connects you to lendersCredit CheckA look at someone’s borrowing historyDepositThe upfront amount paid before borrowingMonthly PaymentWhat you pay each month to settle the loanTermThe length of time to pay off the finance

Most Common Questions (FAQs)

Do customers need perfect credit?
Not always! Many brokers work with people with less-than-perfect credit.

Is offering finance complicated for my business?
Not at all. Brokers like Kandoo make the process easy and handle the regulatory stuff for you.

How fast is the process?
Approval can happen in minutes – no long waits.

Does my business need a special licence?
You’ll need to be authorised or be an appointed representative, but the broker can guide you through this.

Ready to Help Your Customers (And Your Business)?

Offering finance can really set you apart from the competition. If you want to learn more about making car sales and repairs easier for your customers, or how to get started, check out Kandoo’s website for all the details. Let’s help your customers drive away happy!