The move to include Peugeot and Citroen with Subaru was flagged in July last year when Inchcape Australia announced Subaru Financial Services as the first brand under the newly-created joint venture with Allied Credit.

The arrangement leverages the experience and expertise of Allied Credit which last year purchased the dealer floorplan funding business of Macquarie Leasing.

Financial services for Subaru had previously operated under a white label arrangement with Macquarie Bank in which Subaru Finance loans were funded and managed by Macquarie.

Allied Credit is well known as the wholesale and retail financier for many of Australia’s biggest names in motorcycling, marine and powersports for the past decade but more recently revealed a unique dealer-centric business model as it set off on a plan to become a significant player in the far wider car finance market.

In addition to offering traditional funding to car retailers, Allied Credit’s drive into the car financing market uses a unique business model where a finance partner like an OEM or a large dealer group is offered to form a joint venture with Allied Credit in order to build their own loan book.

It is this joint venture in the loan book that has clearly attracted Inchcape which distributes Subaru and more recently Peugeot and Citroen in Australia.

Inchcape said in July last year that the Subaru arrangement with Allied Credit was “the result of many years of research and evaluation to deliver the right financial services solution to our Subaru and PCA networks, our retail business and our customers”.

Inchcape said that through its “dedicated finance company” its “absolute focus will be on providing its dealer networks and customers with flexibility, confidence and convenience”.

The company said that its respective financial services divisions would offer various finance instruments, including Guaranteed Future Value packages, through its participating retailers in the French brands’ dealer networks.

Guaranteed Future Value (GFV) is tailored for eligible personal and business customers. For a qualifying applicant, it removes the uncertainty of a car’s future resale value because the vehicle’s minimum buy-back amount is guaranteed.

GFV offers an array of customer benefits including tailored payment programs, flexible terms, and the options to upgrade, retain or return the vehicle at the end of the loan term. 

If customers opt to retain their Peugeot or Citroën at the end of the loan term, they will only be required to pay out the balance.

The introduction of GFV will expand the opportunity for Peugeot Financial Services and Citroën Financial Services customers to experience the brand’s latest models with the knowledge that, at the end of their loans, the future values of their vehicles will be protected (subject to the vehicle meeting applicable fair wear & tear and excess km/distance guidelines).

Kate Gillis, managing director Peugeot Citroën Australia, said that the joint venture with Allied Credit was an “exciting time” because dealers could “now offer customers extended avenues for financing Peugeot and Citroën vehicles”. 

“We are hopeful that the launch of Peugeot Financial Services and Citroën Financial Services will generate a strong growth opportunity for both brands in Australia in 2022,” she said.  

“Not only will our financial services provide new customers with greater convenience and improved finance options when purchasing Peugeot and Citroën vehicles, but the introduction of GFV offers real assurance and peace of mind in knowing that the future value of the vehicle is protected,” Ms Gillis said.

By John Mellor and Neil Dowling