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With us, dealers are dealing with complete professionals”
The Santander Consumer Bank wants to step on the gas this year, especially when it comes to leasing. But GW management is also high on the priority list. Automotive Director Michael Schwaiger and Maria-Theresia Liebe-Herzing in the automotive industry interview.
With us, dealers are dealing with complete professionals”
Automotive Industry: Mr. Schwaiger, how did 2015 go for Santander and what expectations and goals do you have for this year?
Schwaiger:Basically, 2015 was a difficult year. Ultimately, we were still successful and grew from 600 to 720 million in sales - i.e. by around 20 percent. The used car business in particular has developed extremely well. We want to be the right and sensible partner for the automobile dealer and optimally support his business. In other words: sell more cars through optimal financing and customer loyalty. I am indeed optimistic about 2016, although we have ambitious goals.
Automotive industry: What specific goals?
Schwaiger:For example, we will focus specifically on leasing. In this context, at the end of 2015 we launched our new VKrG leasing product (Santander Consumer Bank offers its private customers a new leasing variant that complies with the Consumer Credit Act. This replaces the previous leasing financing with mileage billing for new contracts; editor's note). This product is tailor-made and ideal for the car trade. Until now, our main focus has always been on credit. Now we will also get off to a flying start when it comes to leasing. I expect significant double-digit growth here. Apart from that, we will also step on the gas when it comes to used car management. We have numerous ideas for our dealer partners here. And finally, the dealer framework will also be very important. One of our most important tools is to provide our traders with liquidity.
Automotive industry: What other innovations are there?
Schwaiger:From now on there will be no processing fee or collection costs.
Motor vehicle economy: why?
Schwaiger:There is an OGH ruling that processing fees for loans in the consumer sector are not justified. We take this topic very seriously.
Automotive industry: How is the automotive trade doing?
Love-Hearting:The automotive trade is suffering from a certain weakness in margins. That was the case last year and it will be the same this year.
Motor vehicle economy: Is it getting worse?The margin situation has been precarious for a long time.
Love-Hearting:As in previous years, the level will be very low. As a specialist bank, we of course know this, and we are called upon to do so. The traders don't just suffer from low profits. The fact is that the automotive industry is one of the most capital intensive. Our job is to provide retailers with the best possible support in obtaining this capital.
Schwaiger: The market will fundamentally remain stable. And the dealers are actually not dissatisfied. Basically, the market situation is much better than what the media portrays.
Automotive industry: What does a car dealership have to pay particular attention to these days?
Love-Hearting:Active used car management remains a very big topic in the automotive trade. Vehicle procurement is central here. The more intensively and differentiated you are when purchasing vehicles as a used car dealer, the more successful you are.
Automotive industry: Is this topic taken sufficiently seriously by authorized dealers?
Love-Hearting:There is certainly still potential. On the other hand, there is also an extremely positive development, especially since brand dealers are now very committed to used car management. Used cars play a much more important role today than they did three or five years ago.
Automotive industry: What are the financing rates at the point of sale? Is the development positive?
Schwaiger:Yes. The penetration increases. Which shows that retailers really take the issues of financing and customer loyalty seriously. We have retailers today that are already at 60 percent penetration. The naturalness of offering a financing product together with a vehicle is extremely pleasing.
Automotive industry: What do you offer car dealers?
Liebe-Herzing: We offer retailers a retail framework for their warehouse. If they want to work with us on sales financing, we offer a tailor-made solution. We provide him with the right products, whether new, demonstration or used cars. Then he can generate the necessary liquidity. We clearly see ourselves as an alternative to a house bank or as a supplement. Another advantage is that we only secure the vehicles; other securities such as real estate or life insurance are not relevant to us. Another attractive feature is the connection to the sales business. We reach a fair agreement with the dealer. The interest rate becomes even more attractive for the dealer if he also brokers the sales business to us. We pay out immediately – that is, on the same day – both in the dealer framework business and in the end customer segment. In the dealer financing area we have our own tool, we call it “Warehouse Financing Today”. This means that the dealer is always informed about all of his conditions.
Schwaiger:We have simple and practical systems for our partners. With us the dealer is dealing with complete professionals. We have the utmost understanding of the car trade. We care about long-term relationships and ensuring that retailers can rely on us.
Automotive industry: Which segments in the car dealership do your products affect?
Liebe-Herzing: Basically everyone. Dealer financing is aimed at management. Our retail products are for everyone working in sales. Products that cover repair bills, contact the customer service advisor.
Automotive Industry: How many dealer partners do you currently have?
Schwaiger: We have 1267. In any case, it is important to us that we properly support the dealers we have and that we intensify our cooperation. Of course, we are happy about every new dealer partner.