Dear,
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Welcome to the August issue of Motor Finance magazine. Reporting
season has come around again, with a batch of results for motor
finance captives – see p6-7 for more. Meanwhile, for fleets, the
story of the summer so far has been the continuing fall in residual
values, which are melting away more quickly than an ice lolly in
the sun. Now fleets face further pain, as some auction houses are
reportedly forced to raise costs to account for higher fuel prices
– see p10’s News Analysis for the full story.
Much of the current pain caused by tumbling RVs is down to very
soft demand for used heavier and less fuel-efficient vehicles. This
month’s cover story, on p18, looks at how motor finance houses are
coping in an environment where green-minded and cost-conscious car
buyers are increasingly opting for smaller, cheaper cars. As the
average transaction cost declines, are point-of-sale finance
providers feeling the pinch? The overall picture is sunnier than
might have been anticipated, although declining dealer commission
levels remain a worry.
A major new report into the recent history of PoS finance has
less good news to offer, with confirmation that a depressingly low
proportion of customers have PoS so much as mentioned to them
during the sales process. Brian Rogerson finds that the retail
sector, and PoS providers, might have to consider a new approach in
order to make up lost ground.
Jon Walden of Lex has set the cat among the pigeons with his
remarks on consolidation among mid-sized fleets. While fleet
insiders deny that Lloyds TSB has put its Autolease unit up for
sale (see p8), Fred Crawley asks whether M&A activity in the
fleet sector is set to come back into fashion any time soon
(p17).
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWith best wishes for the coming month, and with hopes for a
profitable start to the autumn.
Jo Tacon
jo.tacon@vrlknowledgebank.com
