Silicon Valley giants set to disrupt car finance market
Amazon, Uber and Google could become the next big players in car finance, according to Jim McCaffrey of lender Black Horse.
McCaffrey, Black Horse’s director of products, propositions and enablement, was a keynote speaker at Credit Strategy’s Car Finance Conference on June 8.
He said the big names may soon want to own the whole customer journey.
“They want the customer data; it is data they can sell. I expect to see them playing more of a role in future.”
McCaffrey said digital channels have revolutionised the way customers source finance and cars, using the internet to research options.
“Every month there are 78,000 car-related searches on Google. People are also using YouTube more to discover different cars.”
He said motor finance has doubled over the past five years for used and new vehicles, adding: “The industry is going through unprecedented disruption.
“There are many drivers to that, including current and future regulation. Together with legislation and digitalisation, this shows the way customers are buying is dramatically changing.”