Welcome to the first Motor Finance of 2008. The previous year
brought notable regulatory changes to the motor finance and fleet
leasing markets, in areas as diverse as how to ‘treat customers
fairly’ – still an unresolved issue – and using mobile phones in
company cars. This year is shaping up to be equally as tortuous,
legally speaking; as this issue went to press came news that the
European Parliament has approved the much-debated, long-gestating
Consumer Credit Directive on the €800bn Europe-wide retail loan
market.

When the directive is finally made law in every EU country, at
least two years from now, consumers will – in theory – be able to
look across borders to find the best interest rates for consumer
credit. The motor finance industry is nervous of the directive; the
rules on early repayment remain a particular bugbear.

Finance & Leasing Association director-general Stephen
Sklaroff, responding to the news, said: “We are pleased to see that
the European Parliament has amended some of the Directive’s
original proposals, which would have adversely affected our
customers. But some concerns remain.” He promised that the FLA will
work “closely” with the UK government to address these concerns; we
will keep you updated on future progress.

Elsewhere in the motor finance world, progress is being made on the
development of a Europe-wide market for leasing, with certain
big-name lessors prominent on the continental scene. Neil Kennett
looks at how they manage fleets for international customers whose
needs extend across borders, p14-16.

Arrears – and how they should be handled – look like being hot
topics in the coming twelve months. In our cover story on p17-18,
Brian Rogerson finds out from the experts what motor lenders can
expect from 2008 in a general economic climate which gets gloomier
by the day.
Still, motor lenders may find a silver lining in falling consumer
confidence: as BMW Financial Services’ Bob Jordan points out (p6),
customers feeling the squeeze on their outgoings may be more
inclined than previously to take out finance agreements to acquire
new cars, which if it proves to be the case would provide a welcome
fillip for finance houses.