As Christmas approaches it brings with it two
important things: The end of a year in car finance full of
regulation nerves, combative F&I figures, and ambitious
business plans – and the need for three editorial staffers to drink
whiskey while they review 2011.
In an upper room near Farringdon, away from
the scrum of shopping bags and honking cabs below, over several
single malts, Editor Fred Crawley, Assistant Editor Richard Brown
and Grant Collinson of sister publication Leasing Life
shared their takes on the biggest stories of the year.
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The following is an edited transcript of
their candid fireside chat:
Fred Crawley For me, the most
interesting thing has got to be the non-emergence of Tesco in car
finance. It should have happened but didn’t. The rumour was the
deal with an HP provider fell through.
Grant Collinson I’d say
the biggest story is probably Alphabet buying…
FC It’s got to be a
retail motor finance story.
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By GlobalDataGC Oh. I dunno.
Cars?
FC You need to get with the
programme.
Richard Brown The big story
was subprime.
FC It is every year.
RB Yeah, every year that the
economy goes on like this. Subprime looks like it could be huge,
and this year subprime lenders and brokers achieved the credibility
that the market deserves.
What’s the big story going to be in
2012?
GC I’m going to say cars
again.
FC Commissions disclosure,
I’m convinced this is a big deal.
RB If not the death of HP,
then at least its last rites.
FC Really? That’s schoolboy.
Yes, PCP has come on leaps and bounds, but a lot of that has been
the aggressive captive push on the new market. Dealers turn to PCP
even on used cars now because they want repeat custom – but HP
still tends to bring in more commission.
The wise man might say that two PCP deals
signed in the same period as a five-year hire-purchase would be
better long-term business, but a lot of dealers are still focused
on cash upfront. I’d be surprised if HP fell below 30% of the
point-of-sale market, and there will probably be an end to the
captive incentives bubble which has stoked a lot of the PCP
expansion.
RB So you don’t think
commissions disclosure will take a bite out of HP?
FC Not more than anything
else. It’ll just change the conversation the dealer has with the
customer. Just like the Consumer Credit Directive did, and we got
through that.
RB Well, there are those in
the sector who say we haven’t got through CCD yet.
FC I could argue that there’s
a certain amount of business to be had in saying so…
What would your dream story be next
year?
GC Is this still about motor
finance? Err… Who would I like to meet? Bill Bailey. He hires his
car from somebody and I get to interview him and we get him to hold
up a copy of Motor Finance and say he loves it.
FC ‘Giant Chinese bank piles
money into subprime’…. and hires Bill Bailey as MD for the UK
business.
RB My dream news? ‘Fred
Crawley bloated by humble pie after being proven
wrong on future of HP’.
GC I’d phone up Bill Bailey
for a reaction quote.
What’s your favourite Christmas
song?
FC Christmas With The Devil
by Spinal Tap.
GC Baby, It’s Cold Outside,
mainly because of the movie Elf.
RB Rockin’ Around The
Christmas Tree. It always sounded like it should be in a David
Lynch movie while something colourful but horrible happens.
FC Cut the tape. Merry
Christmas and a prosperous New Year, to all our readers
