Vauxhall’s flagship car finance programme is
to be taken over by Santander Consumer Finance, in a shock move
that dealers say could change the face of manufacturer finance.

As of 3 April, the Flexible Finance scheme,
which offers 0% APR representative over a two- to five-year period,
will be offered to Vauxhall dealers by Santander, with manufacturer
subsidy going to the UK motor finance arm of the Spanish bank.

A spokesperson for Ally Financial in Detroit,
of which GMAC is a trading style, commented: “We understand that
Vauxhall is using an alternative financial source for one of its
current subsidised retail campaigns, as permitted by its global
operating agreement with General Motors.

“GMAC still intends to support a large
proportion of Vauxhall’s UK business, and remains the main finance
provider for Vauxhall dealers, whose business we value. 

“We compete in the retail market every day,
and will continue to do so.”   

While Santander Consumer Finance offered no
comment on the story, three dealer customers of Vauxhall confirmed
to Motor Finance that it was to be the recipient of the Flexible
Finance scheme.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In reaction to the news, Frontline Solutions
managing director Andy Shuter commented: “From our point of view
this is quite shocking – is this the start of manufacturers spread
betting with their finance schemes?

“Vauxhall has seen that Santander is prepared
to do the programme on more favourable terms, and has chosen them –
it’s the first time a manufacturer has gone against its finance
company in a decision like this.”

Meanwhile, Cooperative Motor Group operations
manager Ian Beardmore said that the move was not unprecedented, but
a shock in terms of the parties involved:

“Many companies outsource their business –
think of FGA Capital; it used to outsource all its operations. Land
Rover moved from Ford Credit to FGA and Black Horse has picked up
accounts in the past.

“The reason it’s such a big shock is because
it’s GMAC and Vauxhall. Then again in business, if somebody can do
it cheaper elsewhere, you take the opportunity. There’s not such a
tie as there would have been in days gone by between GMAC and

Further comment and analysis of the move will be published
in April’s
issue of

Motor Finance