Consumer credit peaks despite Brexit worries
Posted on in Business News , Cycles News
Consumers have been steadily borrowing more and more, despite the anticipation surrounding Brexit.
Total consumer credit increased by 6.4% in the year to August 2016, which is the fastest rate for a decade.
Economists say that consumer sentiment remains surprisingly strong following June's Brexit vote. The low interest rate environment has clearly helped encourage greater borrowing.
Geraldine Kilkelly, Head of Research and Chief Economist at the Finance and Leasing Association (FLA), said "After a quiet July, all of the main consumer finance products reported new business growth in August, reflecting continued consumer confidence in the general economic outlook.
In the cycle's market, financed sales reflect this growth, with bike and accessories sales via the Ride it away scheme up 25% in August and September vs. 2015.
Although these figures are impressive, they do not reflect the full potential of Ride it away. Recent analysis has identified the potential to more than triple these sales levels.
So how can we achieve this growth?
- Raising consumer awareness. Letting your customers know finance is an option is crucial to growing sales. Did you know 58% of consumers would delay or abandon their purchase if finance weren't available? By simply making a customer aware of finance they will start to look at the affordability of a bike in terms of the monthly payments rather than the cash they have in their pocket that day - which leads to 30% of customers spending more than they intended to.
- Better in-store and online promotion by retailers (e.g. web banners on websites)
- Displaying POS throughout retail stores. ACT offers fully compliant in-store and online POS including swing tags, hanging banners and window stickers.
- Empowering retail staff. Developing staff skills to incorporate
finance into the sale process is vital. Don't wait to introduce finance
at the point of sale, by this point the customer has already made up
their mind about what to buy.
- Suppliers implementing Partner Finance Promotions (see Madison promotion)
- And much more... click on the green button below for more detailed guidance.
If you are not offering retail finance or think you could be doing more sales via the scheme, contact us today to find out more.
Suppliers, contact us to find out more about introducing your own Partner Finance Promotions.
Together we can make August even bigger and get bikes moving again!
Ride it away is available to any cycles business* who will benefit from:
- Free V12 set-up worth £495
- Personal support throughout the application and FCA authorisation process
- No minimum finance turnover requirement
- Payment issued by V12 same day and in your bank within 4 days
- National promotion on the Ride it away consumer website
- Access to FCA compliant POS material
- Access to web banners for use on your own website