All articles by Fred Crawley
Fred Crawley
PCP – the current state of play
Many dealers, brokers and funders think 2011 will be the year when sales of Personal Contract Plans and Personal Lease products really kick off An impending used car shortage, changing consumer ideas on ownership, the pressure to increase customer retention and the Consumer Credit Directives emphasis on product suitability could make this a bumper year for the product In the months ahead, Motor Finance will be working with broker Jigsaw Finance to provide statistics and commentary on the PCP market, starting with this rundown of captive and independent offerings
Supply and demand hit by harsh weather
Prices often surge in December as dealers acquire New Year stock and, while 2010 was no exception, the weather was a factor as it left remarketing centres short of stock on top of the traditional seasonal slowdown and reduced trading period.
Editor’s letter: Talkin’ ’bout the next generation
Last week in the offices of a UK motor lender, a conversation about the history of the company took a tangent when a staff members two-year-old child wandered through the room. His mum works in collections and his dads on the underwriting desk theres a good chance that kid is going to end up in car finance,” the MD reflected.
Wholesale used car values drop 4.4% in 2010
Manheim Remarketing reports that overall average wholesale used car values fell by 4.4% (£306) in 2010, compared with 2009 The average age increased by three months to 51 months, and the average mileage rose by 4,009 to 53,605 miles.
MF still on cards for Davenham despite vote against takeover
Plans to raise a fresh motor finance operation from the run-off of asset finance lender Davenham Group plc have been obstructed by the decision of its shareholders not to support a replacement of the companys board. David Anthony, the former CEO of Hitachi Capital in the UK, had enlisted ex-Moneyway chief Gary Jennison to help him take control of the struggling lender, with an eye to reigniting lending with Jennison at the helm as CEO.
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
Taking stock
Stock funding, a long-established, but often overlooked, feature of the dealer finance landscape, is becoming a popular tool of choice for non-captive lenders and even for bank subsidiaries with no presence in retail motor finance. While captive funders still dominate stocking for new vehicles, the much larger used car market is seeing the manufacturer position eroded by brand-independent lenders such as Santander Consumer Finance, RBS asset finance subsidiary Lombard, Close Motor Finance and BMW multimake finance venture Alphera.
Insurance prices soar in 2010
The UKs injury claims culture has seen motor insurance prices grow wildly, as insurers have increased rates to recoup on claim costs over the last 18 months Car insurance prices rose at an unprecedented pace in 2010, with comprehensive policies soaring to an average value of £843, insurance and recovery provider AA has reported. The group said that the annual pricing increase of 33.2 percent was the largest it had seen since it began to monitor the market in 1994.
Davenham MF plans obstructed
Plans to raise a fresh motor finance operation from the run-off of asset finance lender Davenham Group plc have been obstructed by the decision of its shareholders not to support a replacement of the companys board. David Anthony, the former CEO of Hitachi Capital in the UK, had enlisted ex-Moneyway chief Gary Jennison to help him take control of the struggling lender, with an eye to reigniting lending with Jennison at the helm as CEO However, in an extraordinary general meeting (EGM) held on 10 January, shareholders of the group (in which Anthony has held a 14.9 percent stake since last September) voted with a ratio of more than two to one against removing current directors Paul Burke and James Kerr-Muir.
GMAC shrugs off identity crisis
As it sells its fleet business to Investec and waves goodbye to its international insurance services division, GMAC in the UK looks closer than ever to settling its identity after several confusing years. Indeed, just about everything but dealer finance and insurance has fallen by the wayside for GMAC in January this year, it announced it would be transitioning out of the commercial finance market, while October saw the sale of the European component of the groups residential mortgage arm.
Fears claims firms will target CCD
By the start of December, the majority of the UKs motor finance houses will be writing business in accordance with new Consumer Credit Directive (CCD) legislation.