FAQs

How do I get started?

It’s simple please contact Marsh Finance and we can discuss your requirements and help tailor a car finance solution to meet your needs.Whether you are a Dealership looking for another lender or trying to find ways to offer car finance to customers with bad credit history we have a range of products and solutions.

How does it help my business?

By offering competitive car finance to a wider range of customers you can sell more cars and increase profits earned from car finance.Own & Shared Risk solutions help Dealerships & Brokers to sell more cars and significantly increase profits. Banks & Investors work with Marsh Custom to capitalise on the growth and returns being realised in the car finance market without the high costs of setting up and running your own finance company.

How much money will it make me?

Average net returns vary by customer and are dependent on a number of factors. Marsh is currently managing portfolio’s with net returns of 23% after commission. Before starting to work with marsh we will identify your needs, develop an agreed underwriting mandate and forecast expected returns. We then track performance to ensure returns are achieving expectations. To understand more about the benefits of working with Marsh Finance please contact us.

Why do you use manual underwriting?

Manual underwriting enables assessment of all variables. Marsh Finance makes a seamless transition from prime to subprime, on a risk for risk basis. Our manual underwriting process uses Marsh’s proven risk analysis software to profile customers extremely quickly, this means we can consider high risk indicators that other lenders automatically decline. Ultimately for Dealers & Brokers this means Marsh can say yes to more HP & PCP finance agreements for your customers, helping you to sell more cars and financial products.

What is a Hire Purchase (HP) agreement? 

Hire Purchase, or HP, is one of the most popular ways to finance a car. Hire Purchase agreements are essentially secured loans; the finance provider lends the money to pay for the vehicle but retains the right to the vehicle. The customer makes regular monthly payments over an agreed term normally between 12 – 60 months.  At the end of the term the ownership of the car passes to the customer.
Because Hire Purchase agreements are a form of secured loan in the event that monthly payments are not made finance company has the right to take back the car.
Interest rates for Hire Purchase agreements are set by finance providers and vary depending on a multitude of criteria including the amount being borrowed, the repayment period, the deposit, credit worthiness of the customer and many other factors.

What is Personal Contract Purchase (PCP)?

Personal Contract Purchase or PCP is a popular way to finance a car.  PCP agreements estimate the value of the car at the end of the contract.  The finance company sets a minimum figure which they guarantee the car will be worth called the ‘guaranteed future value’ (GFV). The GFV, and any initial deposit are deducted from the price of the vehicle and the customer’s monthly payments are calculated on the balance, plus interest on the balance and interest only on the GFV.  Customers pay fixed monthly fees over an agreed term normally between 24 – 60 months.  Legal ownership is retained by the finance company until the end of the contract when customers can either purchase the vehicle for price agreed at the start of the contract or return it to the finance company.

What is Premium Credit?

Premium Credit provides Dealerships with a means of selling ‘extras’ separately and without affecting the finance of the main purchase – of a car.  Dealerships fund the cost of the product the customer is buying E.g. paint protection.  Customers pay a monthly fee for the product plus interest for a fixed term normally between 6 – 36 months.  Dealership receive the monthly payments less a management fee.  The initial outlay for the cost of the products is generally returned within the first 0 – 6 months. Premium Credit is another way for Dealerships to sell additional products, offer their own finance products and create a monthly revenue stream. Premium Credit is an easy way for Franchised Car Dealerships to test a own risk finance solution.  To find out more about Own Risk solutions click here