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.

Liquidity shortage causes increased caution in car replacements

Tesco staff offered personal leasing pilot with Lombard Vehicle Management

The staff of UK supermarket Tesco have been offered personal car leasing through a tie-up between the supermarket and fleet management and leasing company Lombard Vehicle Management The scheme, accessed through a password-protected website, is separate from Tescos company car scheme for staff, said Tesco spokesman Matthew Dransfield While Tesco employs over 250,000 people in the UK, making it the countrys largest private employer, the number of those eligible for the private leasing scheme was not disclosed.

GMAC Financial Services reports loss of $2.5bn

GMAC Financial Services reports loss of $2.5bn GMAC Financial Services, the automotive, real estate, insurance and commercial business financier, reported a net income loss of $2.5bn for the second quarter of 2008, down $2.7bn from a net income gain of $293m in Q2 2007. GMACs loss was predominantly the result of $716m impairment in vehicle operating lease assets in the automotive finance business, due to declining vehicle sales and lower prices for some used vehicles segments

BCT looks for “quality and volume” from brokers

BCT looks for quality and volume from brokers Non-prime motor finance house British Credit Trust (BCT) has cut its ties with a number of brokers that it deemed underperforming. CEO of BCT, John Sinclair confirmed to Motor Finance that brokers which failed to deliver the volume and the quality of business that the finance house needs have had their relationships with BCT terminated. Sinclair declined to give details of numbers of broker relationships which have been ended for these reasons in recent months, but emphasised that BCT is committed to the UK broker sector, and that the lions share of BCTs brokers are still supporting the business.

Systems upgrade for ALD Automotive

Systems upgrade for ALD Automotive ALD Automotive has announced a series of major upgrades to its fleet administration and customer service IT systems. Its suite of online fleet management applications, formerly known as QuDOS, has had its online ordering process enhanced, and has been rebranded as threesixty, ALD said. The enhancements see the upgrading of functionality to enable changes to fleet policies as well as driver information to be completed online by customers – instead of clients informing ALD Automotive which has then administered the changes