Since the onset of the global credit crunch it is not only those looking to take out credit cards, mortgages, and loans that have been affected. The effects of the global credit squeeze have impacted on consumers looking to take out all sorts of finance, and this has been further reflected in a recent announcement from Welcome Car Finance, which has specialised in offering car finance to consumers that have poor credit.
According to a recent report the car loans specialist is withdrawing funding from other independent dealerships in order to focus on its own outlets, and officials state that this could cause problems for many consumers hoping to get finance on a cheap vehicle via a local dealership. It means that consumers will not have to go through a Welcome showroom in order to get finance from Welcome, and this could well end up costing them more to get their hands on a vehicle and with the possibility of additional costs on auto insurance.
Officials from Welcome Car Finance have insisted that the reason behind the withdrawal of funds from independent leaderships is nothing to do with the global credit crunch, stating that the actual reason was to concentrate on their own outlets. One official said: ‘Why would we help other dealers make money from selling cars and loans when we can make more doing it ourselves?’
An industry official stated: ‘Most of the sub-prime car market relies on Welcome, so many dealers - perhaps 60-70% - will find this a devastating blow. Consumer choice will also suffer. Whereas those with a poor credit rating could previously turn to hundreds of dealers, they will now only be able to choose between the dozen Welcome dealerships.’