Admiral Loans has entered the direct-to-consumer car finance market, launching with HP, PCP and personal loan products. Admiral Loans itself only launched in June 2017.
Representative APR stands at 5.9%, suggesting it will be targeting the prime section of the market. As applications are made on Admiral’s site, the company will not charge commission.
Admiral Loans said it also provides no-obligation quotes which will not impact consumer credit scores.
Its HP product will offer loans of £2,900 to £25,000 for between 12 and 60 months. Admiral will pay the dealer directly following an online application.
The PCP’s range is between £4,900 and £25,000, while the unsecured personal loan is for between £1,000 and £25,000. The term length for both of these is also for between 12 months and 60 months.
UK chief executive office of Admiral Loans, Scott Cargill told Motor Finance the company had been planning the move for a number of years.
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He explained: “Admiral is the largest car insurer in the UK. We have a 15% market share of all car insurance. We’re speaking to our customers on a regular basis about car swaps and car buying and we have a lot of data with regards to how and when customers are likely to change vehicles. There is a very logical strategy which is those customers who like Admiral as a brand, who like to talk to us about car products, not just insurance, may also like to talk to us when they are changing their car about things like finance.”
In a statement, Cargill said that buying a car is one of the bigger purchases a consumer will make and that it is therefore important that any finance they take is thought through, appropriate to their needs and their financial circumstances.
He added: “Admiral has been trusted by motorists to provide insurance for many years, and is now extending that support to helping them finance a vehicle purchase. Launching car finance demonstrates our commitment to support consumers across all aspects of car ownership, with options to suit different credit needs and preferences. We want to give consumers a choice, and one that doesn’t involve large commissions that can be packaged into traditional car finance at the forecourt.
“We hope our simple, online processes enable customers to compare and think through all the options available to them allowing them to buy their dream car without also getting a financial nightmare over how to pay for it.”
Admiral Loans first launched in 2017 to offer personal loans in the UK as the insurance firm looked to enter new markets.