UK catalogue and ‘high street’ retailer Argos is strengthening its role as a car loan and insurance provider with a new campaign planned for next year.
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Currently only a minor force in motor finance, with only 2,000 people using Argos to fund car buying, the consumer giant will expand the business through its catalogues, shops, direct mail and credit card holders.
David Ogle, general manager of Argos Retail Group’s financial service division, is committed to a: “stronger approach” to motor loans and insurance by harnessing these “external processes.”
Although Argos claims it has not finalised the marketing details of the campaign, Ogle emphasised: “We don’t want to dilute the strength of our core brand. Some of our motor finance growth will come through dealers and the company car/ fleet market.”
Funding for new and used cars will be offered within a personal loan band of £1,000 and £21,000. It currently offers loans with a headline 6.9% APR and a “typical loan level” of 11.9%.
Argos’s commercial footprint covers printing 15 million catalogues which are distributed twice a year and the company estimated that each year 70% of UK households have one catalogue in their homes or visit a store.
Ogle said: “While there is an awful lot of extra mileage in home improvements and debt consolidation, there is obvious room for future growth for us in the car loan sector.”
Argos, which officially launched its car loans service in January this year, is also planning a “beefing up” of its online automotive finance service, which operates via its website and its related financial services microsite.
Ogle added: “We don’t have a spectacular online car loan offer. We have been gently seeking a response and testing the market but will make it more prominent next year. We will also exploit our significant credit card data base.”
