Fleet News

PHH joins Woolwich to launch high street PCP scheme

WOOLWICH and PHH Vehicle Management have launched a joint venture to take a company car-style personal contract purchase scheme into the high street. The motoring package is called Woolwich Motorbase and links the strengths of PHH's specialist vehicle operational skills with the bank's brand name and financial expertise.

Woolwich will provide finance at 9.9% APR, carry the credit risk, and offer an insurance facility through Woolwich Insurance Services, while PHH will handle orders, underwrite the residual value risks, and provide optional fixed cost maintenance. Motorbase will be sold via the telephone or Internet, and will enable customers to buy a car outright and benefit from Woolwich's specially negotiated discounts; buy on hire purchase; or base repayments on the amount borrowed, less a guaranteed future residual value.

John Cullum, PHH president, said he expected manufacturers and dealers to support Motorbase, despite the apparent threat to showroom traffic, saying the service would bring incremental new car sales which would be sourced through dealers. 'Internet selling will change the nature of sales, and who knows what will happen to block exemption?' he said. 'Manufacturers are keen to move in new directions to protect and build their market share.'

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