Thursday, November 22, 2012
ING pullout leaves luxury car funding hole
The withdrawal of ING Lease from the UK asset finance market has left a £1.7bn void in lending, including high-end vehicle finance.
Despite being in profit, ING Lease announced on 29 October it would accept no further business after November, with the majority of its portfolio to be run down over the next two years, and leaving what fellow lessor Lombard has defended as an "increasingly important" market.
With £1.2bn of business written in 2011 and an end-of-year book of £2.7bn, estimates put ING's share of the £3.7bn of brokered asset finance at 30-45%.
With some car finance brokers channelling 90% of their business to the company, Tim Marlow, owner of luxury car finance broker Bridford, has estimated ING will leave a void of £1bn in funding, although sister publicationLeasing Life understands the vast majority of ING's book is in equipment, not car, finance.
Minding the gap
Although Aldermore and Hitachi Capital are both looking to conduct more business through the brokered market, leasing competitor Investec Asset Finance has already stated its intentions to double its book by 2014 in the wake of the ING extraction.
Investec already has prestige car finance partnerships in place with broker London Asset Finance andmanufacturer McLaren, both arranged before the news of ING's withdrawal.
Mike Francis, head of Investec Asset Finance, said the firm has "confirmed its continued commitment to the market for broker-introduced asset finance."
Francis added Investec is currently writing £350m in new business a year and aims to expand its portfolio to £1bn following the departure of ING.
DATED: 22.11.12
FEED: MF
Equifax offers income data to consumer lenders
Consumer credit information agency Equifax has launched the Equifax Financial Stability Exchange, a database which will provide consumer lenders with declared and verified income data.
The data will be part of the Equifax Financial Stability product suite offering, to be launched later this month. The income data will be accessible as an integrated component of application and customer management process, cutting out the need for additional income verification.
A range of organisations will be invited to use the data-sharing software including mortgage providers, peer-to-peer lenders, building societies and insurance companies as well as leasing and motor finance companies and professionals.
According to Equifax, the new offering will also help businesses to comply with the latest guidelines from the Officer of Fair Trading and Financial Services Authority; in particular the Responsible Lending and Treating Customers Fairly requirements, which necessitate credit providers' active verification that the individual will be able to meet their payment commitments.
Laurence Hamilton, marketing and performance director at Equifax said: "Sharing of credit data is already a well-established practice in the consumer credit marketplace. We, therefore, expect the Equifax Financial Stability Exchange to play a key role in improved risk management.
"By providing trusted, transparent and reliable income verification, from application and over the lifetime of a credit agreement, we firmly believe we can drive up best practice across the industry."
DATED: 22.11.12
FEED: MF
MotoNovo expands following £1.8m investment
Independent car finance provider MotoNovo is set to use a £1.8m investment from parent company WesBank to fund a significant expansion drive.
MotoNovo, formerly Carlyle Finance, will recruit 20 field-based development managers to work across the UK and a number of F&I executives to be based at its Cardiff office.
The company also plans to enter in to a number of untapped markets and to launch a fresh raft of finance products, details of which will be released in the next two weeks.
'Significant momentum'
MotoNovo is aiming to double their sales with the measures, propelling them in to the top three independent finance providers.
Mark Standish, chief executive at MotoNovo said: "We have gained significant momentum in the market place, which we want to leverage to increase our own sales and those of our dealer customers.
"We have created a dynamic, winning culture, and we now need energetic and committed people, who want to build their career with us, to come on-board."
DATED: 22.11.12
FEED: MF
GM-PSA plans held up over finance bailout
The €7bn (£5.6bn) French government bailout of Banque PSA appears to have stalled plans for a 'strategic global alliance' between GM and PSA Peugeot-Citroën announced in February.
Although the scheme was to focus on manufacturing and design elements of PSA and GM, responsible for Vauxhall in the UK and Opel on the continent, conditions of the support for PSA's lending arm stipulate no French jobs would be lost at Peugeot.
This would put increased burden on Opel, based in Germany, to make cuts, stunting the partnership plans which already involved plant closures and staff reduction.
Both GM and PSA have been hit by the European slump in car retail with GM, which paid €400m for a 7% stake in PSA, announcing four vehicle programmes in conjunction with its French counterpart as part of a wider recovery plan of new models and engines.
DATED: 22.11.12
FEED: MF
UK beats car finance added value global average
Market research by consultancy firm Finaccord has found a global discrepancy in the sale of financial services and insurance by car dealers and manufacturer brands.
The research, covering 38 countries between 2010 and 2012, has found the average value of additional financial services exceeded 3% of the value of the car in only five nations: Canada (4%), Portugal (3.7%), France and the UK (both 3.6%) and Australia (3.5%), with an average across the 38 countries of just 1.4%.
In contrast, Canadian dealers do not sell motor insurance and the UK, Australia and France only made between 0.8 - 1.4% of the car value through insurance premiums, compared to a global average of 3.3%
David Parry, managing consultant at Finaccord suggested this was because "motor insurance is generally sold by other channels and where the automotive trade has had more success in selling ancillary insurance, warranty and assistance policies.
"Car dealers are a primary distribution channel for motor insurance in Asian countries such as China and South Korea."
DATED: 22.11.12
FEED: MF
Retail-strong UK sales buck Euro trend - PwC
Autofacts, the automotive unit of PricewaterhouseCoopers (PwC), has claimed the boost in UK new car registrations above expectations is being fuelled in private retail sales, up 23.9% year-on-year in October, rather than business or fleet orders.
PwC automotive partner Phil Harrold commented that there was "no doubt it is the private buyer supporting the UK market" and suggested retail consumers are increasingly looking for smaller models such as the Mini and Fiesta that are cheap to run and easily-manoeuvrable.
The suggestion echoes observations made by Experian and at the Finance & Leasing Association annual used car seminar this year regarding the increased popularity of smaller cars.
European counterparts
Analysis by PwC also shows the UK market is continuing to outstrip its European counterparts: UK car registrations climbed by 12.1% to 151,252 in October, representing a year-to-date growth of 5.0%, whilst the equivalent figure for the EU + EFTA market fell by 6.9% to 10.7 million units.
PwC attributed the growth to the UK market rising in confidence, avoiding some of the negative impact of the Eurozone crisis as the nation moves out of recession.
PwC analysts now forecast demand for new cars will exceed two million units this year in the UK, on a par with the revised estimation by the Society of Motor Manufacturers and Traders.
DATED: 22.11.12
FEED: MF
Auto Trader and Car Loan 4U finance partnership
Auto Trader has announced a new partnership with online car finance broker Car Loan 4U.
The collaboration will allow visitors to the Auto Trader website to search for an instant finance quote tailored to their chosen car model and individual circumstances. Consumers will also be able to submit loan applications through the website and receive a response in less than an hour.
Car Loan 4U said the offer is in response to public demand for instant car finance, after seeing an estimated 60% increase in online searches for car loans in the last 12 months.
James Wilkinson, director of Car Loan 4U said the collaboration with Auto Trader "will enable us to reach a huge number of potential new customers. With the Car Loan 4U solution integrated into Auto Trader, consumers will be able to access an instant direct-to-consumer financing option to help them move forward in the car buying process."
James Wilkinson, director of Car Loan 4U said the collaboration with Auto Trader "will enable us to reach a huge number of potential new customers. With the Car Loan 4U solution integrated into Auto Trader, consumers will be able to access an instant direct-to-consumer financing option to help them move forward in the car buying process."
DATED: 22.11.12
FEED: MF
Finance director appointed at Benfield
Gerard Murray has been appointed as group finance director of 30-site motor dealership, Benfield Motor Group.
Currently group finance director at Immunodiagnostics Systems Holdings, Murray will take up his new position on 2 January.
Murray is a chartered accountant, and was formerly the youngest finance director of a quoted company, having been part of the executive team that floated Reg Vardy at just 27.
Mark Squires, chief executive at Benfield and due to speak at todays Finance & Leasing Association motor finance conference on 22 November, said: "This is a key appointment which demonstrates our strategic intent and aspiration to deliver our company vision to become one of the best in our industry."
DATED: 22.11.12
FEED: MF
Inchcape raises over £30,000 for BEN
Inchcape, dealer group and fleet service provider, has raised almost £32,000 for charity as 100 volunteers from the organisation completed the Three Peaks in 24 hours Challenge.
The money, which exceeded the target total of £30,000, has been donated to automotive industry charity BEN. The charity provides care and support for motor industry professionals in times of illness or difficulty and has four residential centres across the UK.
Kerry Howard, chief executive at Inchcape, said the experience was "an opportunity for many to complete a personal challenge and to engender some competition and team spirit."
BEN's regional development manager Valerie Moore, who received the cheque, said: "Taking on the three highest peaks in England, Scotland and Wales is no mean feat in itself but to raise £32,000 in the process is fantastic. We thank you most sincerely."
DATED: 22.11.12
FEED: MF
Vauxhall announces leasing rates
Vauxhall has unveiled new contract hire deals across the Corsavan, Astravan, New Combo, Vivaro and Movano.
The deals will be supported by Vauxhall's dealer network and include £161.99 a month for the Astravan Sportive, £166.99 a month for the Combo Van, and £199.99 a month for the Vivaro.
Vauxhall is hoping to attract custom with the lower rates which also include roadside assistance and vehicle excise duty for the duration of the contract.
DATED: 22.11.12
FEED: MF
Vauxhall target retail, not fleet
Vauxhall chairman Duncan Aldred has said the brand will not target fleet sales to gain market share on Ford and will focus instead on retail.
Speaking to Car Dealer magazine, Aldred said the marque this year was "moving away at grabbing market share at all costs and focussing on retail sales.
"We won't target fleet sales at all costs just to grow registrations... We need to focus on more profitable retail sales," he said.
However, some in the industry have alluded to the inaccuracy of registration measurements from the forecourt. While dealer group Vertu Motors has warned of problems between fleet and private classfications, data provider CAP has called for dealers to show greater transparency over the pre-registration of vehicles to earn volume bonuses.
The market
Aldred's statement comes while GM, the umbrella group for Vauxhall in the UK and Opel in Europe, has announced plans to attack continent-wide retail with 23 new models and 13 new engines to recover sales figures in the next few years.
Retail finance, meanwhile, has proven to be more profitable in the UK than most other national markets, according to Finaccord, which recently published research showing the average value added by finance in the UK was 3.6%, compared to an average 1.4% across 38 countries.
And Vauxhall has shown it is willing to maximise the added value of retail by tendering its 0%, five-year Flexible Finance package to both GMAC and Santander.
DATED: 22.11.12
FEED: MF
Dacia’s opening PCP offer
Newcomer to the UK market, Dacia, is marketing its Sandero and Duster models with PCP deals of 9.4% and 11.9% APR respectively.
Although acquired by the Renault Group in 1999, this is the first time the Romanian brand has been available in the UK and with finance provided by RCI Financial Services (RCI FS).
Together with the new Clio RS model and Renault range of electric vehicles, Steve Gowler, managing director at RCI FS, has spoken of the expectation within the Renault Group that the introduction of Dacia would boost sales in the UK following the restructuring of its retail network at the end of 2011.
Through Dacia Dimensions, the PCP product name for the brand, the Sandero will be available, with a £1,845 deposit, at £69 a month on a 48-month term, or £99 a month on a £699 deposit, with the option to purchase the car with a balloon payment of £1,701.
The Duster SUV, which Richard Lawton of MainDealerOffers suggested was an affordable product to attract customers back to new cars, will also be available at £8,995, cash, or £99 a month over 48 months with a £3,179 deposit.
DATED: 22.11.12
FEED: MF
Casino banking at MotoNovo
Independent finance provider MotoNovo has begun a rewards incentive programme for dealer personnel.
Called MotorV8, the scheme replaces traditional voucher incentives with a pre-paid Visa card for participating members. Current rewards programme members are being transferred to the new system.
Each finance transaction will increase the funds available on the card with a range of ways for dealers to increase the value of their rewards, including gambling them on a web-based game of Black Jack at the MotorV8 portal.
MotoNovo has grown its market share of the independent sector from roughly 3% five years ago to 10% at present and the changes to its dealer reward programme follows recent news of a £1.8m investment by parent WesBank and plans to expand the company.
Easy access?
Karl Werner, head of sales and marketing at MotoNovo, explained: "For many dealers incentives form a key tool in motivating their team to increase sales.
"We have developed a programme that is easy to use and easy to earn, with monies credited to the account within 48 hours ready to be spent anywhere the Visa logo is displayed."
DATED: 22.11.12
FEED: MF
HPI offers Spec Check free to dealers
Vehicle valuation service HPI is celebrating the launch of its HPI Spec Check product by offering it free to dealers for a limited time.
Spec Check draws upon manufacturers' build specifications to identify the optional extras fitted on an individual vehicle.
It provides details of cost options fitted at the time of build, as well as the total price for a particular vehicle when new, and calculates a 'star rating' from one to five, with one star being totally standard and five stars showing a significant quantity of cost options.
Daniel Burgess, managing director for HPI, said: "This launch forms part of HPI's ongoing commitment to bringing dealers a flexible range of solutions, designed to help them sell with confidence and boost their bottom line."
DATED: 22.11.12
FEED: MF
Lex appointment reflects LCV growth aim
Gary Banister has joined Lex Autolease - from his fleet management position at Rentokil-Initial - as senior manager for commercial vehicle consultancy.
Banister's main roles will be to develop new LCV business and support the project management of the company's commercial vehicles operation.
The appointment is part of Lex's aim to reshape its commercial vehicle offering - currently accounting for a quarter of it's 280,000-vehicle fleet - into a single service managing everything from contract hire to vehicle conversions and consultancy.
DATED: 22.11.12
FEED: MF
LCV regulation could see cost rise for fleets
There are fears European commercial vehicle regulation could cause "chaos" for fleet operators, according to the British Vehicle Rental and Leasing Association (BVRLA).
The European Community Whole Vehicle Type Approval (ECWVTA) for light commercial vehicles, due to be introduced from the end of April 2013, will require additional approval for any modifications made.
The BVRLA has pointed out almost all panel vans will have some modification to equip them for service and the trade body expressed concern that each vehicle would have to be individually re-inspected, tested and approved under the regulation.
The BVRLA is working with the Vehicle Certification Agency (VCA) on a 'light touch' approval scheme for the more common vehicle modifications, to reduce the burden on fleets and will publish a list of modifications both bodies feel have no impact on a vehicle's original type approval before the regulation comes into force.
John Lewis, BVRLA chief executive, said: "While the VCA's 'light touch' proposal is a step in the right direction, there are still too many unanswered questions and we are very concerned that the system will not be able to cope with this potential new surge in type approval testing.
"This could have a major effect on lead times for fleet van operators, who need to get to grips with the potential time and cost implications involved."
Lewis added the BVRLA and would continue working with the VCA and the Vehicle and Operator Services Agency which will police the regulations to avoid delays or additional costs to its members.
DATED: 22.11.12
FEED: MF
Nissan's British models drive 5% fleet market share
Nissan's fleet sales for the first 10 months of 2012 are up by 9% on the same period last year, with the Japanese manufacturer selling 43,918 cars, January - October.
Nissan's fleet sales director Barry Beeston said it was "good to see our British-built products are proving a winner with company car drivers", with 89% of its fleet being built in the UK.
The Qashqai is Nissan's most popular fleet vehicle, selling 19,309 units, with sales of the Juke and LEAF more than doubling year-on-year to 8,965 and 458 units respectively.
Qashaqai +2 and Note shifted 4,965 and 6,005 units respectively, contributing to Nissan's 5% market share in UK fleet.
DATED: 22.11.12
FEED: MF
Ssangyong launches low-priced 4X4
South Korean manufacturer Ssangyong has launched the Korando CSX, a low-priced compact 4X4, starting from £15,995 excluding VAT.
The 2 litre diesel powered 4X4 has 1,312 cubic litre load volume and a 433kg payload, and comes with a 5 year unlimited mileage warranty.
Paul Williams, CEO of SsangYong Motor UK, said: "The new Korando CSX is the third light commercial vehicle to join the SsangYong line-up, and offers a highly practical and affordable vehicle for those with a specific business need".
DATED: 22.11.12
FEED: MF
LeasePlan to run UK's first fire service salary sacrifice scheme
The Mid & West Wales Fire & Rescue Service is to become the first fire authority in the UK to operate a salary sacrifice car scheme.
The service, whereby staff may opt to pay a proportion of their salary toward a new car package at a preferential rate, will run the SalaryPlan scheme offered by Automotive Leasing, the public sector division of LeasePlan.
The plan will centre on low-emission and fuel-efficient cars as part of the Service's commitment to reduce the environmental impact of its fleet.
DATED: 22.11.12
FEED: MF
DSG and Bridford combine
Tim Marlow, owner of luxury vehicle broker Bridford Financial Solutions, has joined the board of DSG Financial Services as director and shareholder with immediate effect.
The move effectively merges DSG, one of the highest-volume brokers, with Bridford, one of the most prominent brokers in the surprisingly resilient luxury vehicle segment.
Bridford will swap its branding to DSG Prestige - the high-end vehicle division of DSG begun in February 2011 with a broker facility from ING Lease - with Marlow in charge.
Bridford's main office in Ilkley, West Yorkshire, will be maintained as the base of operations for DSG Prestige as will dealer arrangements held by Bridford. Marlow's five closest team members will also be retained by DSG.
'Prestige solution'
Marlow was positive about the prospects for DSG Prestige joining DSG's "vast array" of lenders and consumer deals with his specialism in prestige cars, while Richard Hoggart, managing director of DSG, said he was delighted by the appointment.
"The recent withdrawal of ING from the prestige market gave us an opportunity to really review this sector," explained Hoggart.
"We believe combining the strengths of Tim's contacts with our product portfolio and operational expertise creates an excellent solution for prestige car dealers."
Marlow added that "heading up DSG Prestige is a great step forward for me and creates an excellent environment for me to really develop a presence in the growing market."
Marlow added that "heading up DSG Prestige is a great step forward for me and creates an excellent environment for me to really develop a presence in the growing market."
DATED: 22.11.12
FEED: MF
