All articles by MF Editorial

Lack of sub-prime finance threatens part-exchanges

Lack of sub-prime finance threatens part-exchanges Dealers who fail to appraise part-exchanges realistically risk damaging their profits, Manheim has warned, as private purchasers grow ever scarcer, and trade buyers become choosier about the condition of the vehicles they will consider. Manheim Auctions & Remarketings MD Mike Pilkington said: Apart from general consumer concerns over car running costs, the credit crunch is restricting the number of potential retail buyers in the market.

Financier offers ‘time out’ to motor loan customers

Financier offers ‘time out’ to motor loan customers Carlyle Finance has introduced a new tool to help its dealer partners sell motor finance alongside cars: the “Time Out” loan. Designed to give customers a month off making payments every year, Carlyle said it expected the Time Out initiative to help dealers during what is a difficult time for motor retailers. Under the terms of Time Out, an agreement which would originally have run for 24 months will instead run for 26 (i.e. 24 2), and a 36-month agreement for 39 (36 3)

Phantom fleets in ‘contract hire’ pricing dodges

Phantom fleets in contract hire pricing dodges Phoney contract hire fleets are causing grief for franchised dealers by undercutting their prices Some brokers are posing as contract hire companies in order to benefit from manufacturers volume discounts – but then ignore the trust agreement and simply retail the cars, with minimal chances of being caught, said Colin Bruder, managing director of the Network Automotive consultancy. Bruder added: In other cases brokers can play off a number of franchised dealers, again posing as a fleet buyer, to drive their buying price right down

The car champion

Brian Rogerson meets the head of the SMMT, Paul Everitt, whose job may not be easy at present, but who clearly relishes the challenge This January Paul Everitt was appointed as chief executive of the Society of Motor Manufacturers and Traders (SMMT) It must have seemed that he was handed a poisoned chalice as the UK automotive industry, long buoyed up by record sales, was almost immediately hit by a perfect storm of an international economic recession The SMMT also faced challenging legislation in the shape of new European CO2 regulation, a new automotive industry code of practice for service and repair, a build up to changes to the block exemption due in 2010, not to mention the tricky task of organising the British International Motor Show and the Commercial Vehicle Show.

Pendragon prepares sale of software business

The troubled car retail company is said to have appointed the advisory firm Arden Partners to oversee a strategic review of the business, which makes Pinnacle, the back-office management software that is licensed to dealers, distributors and fleet operators.

Black Horse ‘achieved H1 objectives’

Bank of England holds interest rates at 5 per cent

The Bank of England’s Monetary Policy Committee has decided to hold interest rates at their current level of 5 per cent CBI director Richard Lambert commented: “The latest data show the slowdown in UK economic activity gathering pace, and business and consumer confidence falling further.

Lloyds TSB Autolease sale rumours ‘unfounded’

Lloyds TSB Autolease sale rumours unfounded A report in the national press which stated that Lloyds TSB is to sell its fleet division, Lloyds TSB Autolease, has been dismissed by industry sources. Although a spokesperson for the Lloyds TSB press office said that it was the banks policy never to respond to market rumour and speculation, he added that, as Autolease is a market-leading, profitable business the bank is under no pressure to sell the fleet unit.

Another housing group van win for Lombard Vehicle Management

Another housing group van win for Lombard Vehicle Management Lombard Vehicle Management is to supply West Midlands-based Whitefriars Housing Group with 110 vans, in a deal worth around £300,000 annually, with the contract to run for five years. The vans are to be sourced from a single manufacturer, and will comprise panel vans, tippers, flat backs and drop side vehicles. The tender specified that the “most economical” bid would be successful; the wining bidder will have to provide a “fully managed” fleet, including “acquisition and disposal of vehicles, customer service and interface with drivers, maintenance, servicing and repairs to vehicles, accident management, breakdown and recovery, duty of care support and rental solutions for short term requirements”.

Inchcape Fleet Solutions wins renewed five-year fleet deal

Inchcape Fleet Solutions wins renewed five-year fleet deal Inchcape Fleet Solutions (IFS) has won a five-year renewal of its contract with British Waterways, which operates a fleet of 1,000 vehicles – 450 of them company cars, with the remainder commercial vehicles. IFS first won an outsourcing contract for the British Waterways fleet in 2004, when it beat out six other lessors for the prize. Under the terms of the deal, British Waterways will outsource the management of its company car fleet to IFS, while the lessor will take on the job of acquiring commercial vehicles for British Waterways through outright purchase, and of disposing of them as appropriate.