Direct Access to Credit Unions (DACU), a new project set up by credit unions across Ireland to provide car loans to both members and potential new members, has been revealed.
The launch of this initiative coincides with the release of SIMI's January new car registration statistics that show an increase of 29 percent over January 2010.
Speaking at the Merrion Hotel at the launch of DACU, Director General of SIMI, Alan Nolan said, "We have seen new car sales increase in 2010 with this trend continuing in January. None of this would have been possible without the support of the banks and finance houses that have provided working capital, stocking finance and consumer finance for dealers. This has been focused mainly on the Franchise dealership networks but for used car sellers in the Independent (Non-Franchise) garages, the non-availability of finance has remained a serious challenge. It was to solve this challenge that our Independent Dealers Committee worked with DACU to launch this new project."
"The Government Scrappage Scheme continues to be a great success which will hopefully continue to drive new car sales. With today's announcement, the used car business should also see further activity. Between the traditional finance providers and the new DACU initiative launched today, the good news for all car buyers is that finance is available for creditworthy customers."
Chris Fleming, Chairman of SIMI's Independent Dealers Committee believes that this is a hugely important development: "For the professional non-franchise garages specialising in selling used cars, the lack of consumer finance has been a huge problem. We are delighted to see this project come to fruition today and I think it will be very significant in helping our businesses move back toward more normal levels of activity."