You will obviously be pleased to know that last
month was my best this year. In fact I managed to pay for the
monthly shop in cash instead of credit card for the first time
since last year, so have we turned the corner? I bloody hope so,
but my gut instinct is we still have a way to go before we emerge
from the brown stuff, so it is still a question of keeping our
heads down and hoping things continue to improve.
Mind you, it is difficult when funds are becoming
less available by the day, as funders fire off brokers and run
short of money to lend, while deliveries of vehicles are being
measured in months rather than weeks. Funders, who I must say have
been pretty good with regard to the lengthy deliveries and fixed
their rates, have started to react to various cars now stretching
out to five-month deliveries.
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It is bad enough trying to explain to a client that
a car is only available on factory order for delivery in five
months’ time, but to have to explain that if the car price
increases in the meantime, he may have to suffer a rate increase
before the car is delivered, is a bit hard to sell.
And what do the customers do as a result? Either
extend their contract for another year or clear off down to the
local main dealer and buy an overpriced used car because they can
drive it away.
Am I also getting a sense of déjà vu? At the time
of the last recession all of the ills of the motor finance industry
and beyond were laid at the door of the brokers who became the
scapegoats of the poorly run car finance sector. Lessor staff
pointed fingers at brokers for increases in defaults, bad debt,
VTs, the weather, interest rates, late trains and anything else
they felt they could blame them for. I remember one funder making a
song and dance over the fact that over 50 percent of his arrears
came from broker-introduced business and firing the vast majority
of his brokers before it was pointed out that brokers actually
introduced over 70 percent of his business!
Anyway, enough of my whingeing – after a good month
I should be a little more upbeat, especially as I have a few more
clients, for whom I quoted earlier in the year, now willing to take
out an agreement, so there must be a bit more confidence
returning.
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By GlobalDataProtecting customers
Closing on a controversial note: are we,
as an industry, moving closer to formal regulation under the
control of the FSA? I read many blogs and forums and am seeing more
consumers being ripped off than ever before.
HP with a balloon and conditional sale is
being mis-sold as PCP, end of contract charges – especially to
naïve consumers who are returning end of PCP cars – are going
through the roof and borrowers are paying loan shark interest rates
after being told that they have been declined for loans after
admitting a couple of late credit card payments and knowing no
better. This industry loves to shoot itself in the foot and would
hate it if the red tape became as bad as the financial services
industry, but are we not forcing ourselves down this route by
allowing the shady elements to rip off consumers?
