Ray Auto Dealer Group of Żebbuġ, which encompasses two of the island’s major car dealerships, has established its own financing institution to provide customers with loans for cars in its efforts to provide a holistic service to a growing customer base.
Stocking is a major challenge for us
Finance House plc was granted a licence to provide lending under the Financial Institutions Act by the Malta Financial Services Authority in January. It will begin to operate in the next few weeks.
It will offer financing over three- to five-year terms at accessible rates to its own customers and car dealers through a dedicated, regulated lending structure.
The establishment of Finance House falls under the group’s strategy to diversify its offering in its efforts to grow the business and win market share. Customer demand for previously owned car imports has been sustained after a collection of changes in market and operating conditions awakened a dormant sector a few years ago.
Finance House is the brainchild of James Zammit, the eldest of group founder Ray Zammit’s four children, who has been entrusted with the dealership arm of a considerable family business that is also involved in property development and sales.
Ray Auto Dealer Group is owned by the Zammit family of Qormi. Its flagship operation is the eponymous Ray Auto Dealer, which operates from imposing premises on Żebbuġ’s Mdina Road. Originally established in 1988, the dealership is in the throes of significant growth after successfully positioning itself among the market leaders.
Styled as ‘Malta’s largest car supermarket’, Ray Auto Dealer deals primarily in UK imports of the more popular marques sought by local motorists and enthusiasts.
Its showroom has recently been extended and refitted to stock a larger fleet and to allow its growing team – it now numbers more than 15 – to serve customers more rapidly as its services portfolio is widened.
It acquired one of its major competitiors, the Premier Car Centre of Burmarrad, a dedicated dealership of higher spec models, luxury marques and sports cars, recently.
“Customers have become more price sensitive,” James Zammit told The Sunday Times. “The growth in demand seen in the previously owned car market has been sustained mainly because people appreciate depreciation. There is huge demand for particular brands or models at better pricing.
“Customers are less patient now: they are seeking easier access to car finance for whichever type of car they are after, be it a city car or a luxury model, and shorter delivery times. Stocking is a major challenge for us.”
The group is now able to stock 120 cars at the Ray Auto Dealer premises in Żebbuġ and a further 90 at its partner showroom at the Premier Car Centre over multiple floors.
All cars come with a two-year warranty and customers are offered after-sales servicing and insurance products – the dealership is a tied insurance intermediary for insurance broker Melita Unipol.
Mr Zammit, 28, is a motoring enthusiast with a passion for luxury marques, and, he admits, a passion for selling cars.
Educated at St Edward’s College, and later at St Martin’s, he studied accountancy and marketing and is currently reading for an MBA at Edinburgh Business School.
He took the reins of the business from his father a few years ago after Ray Zammit wanted to dedicate more time to his favourite part of the business – Mr Zammit established his property development activity before the car dealership in 1979.
James Zammit is confident about the prospects for the previously owned car imports market. Despite the market’s small size, motorists change their cars on average every three years, and demand will continue to flourish as people seek to trade up.
He admits Finance House plc will not offer the most competitive rates on the market – the business model is designed to offer uncomplicated access to financing under a strategy to meet customer demand and expectation more efficiently.