All articles by Fred Crawley
Fred Crawley
Broker sees direct-to-consumer sales soar
While the administration of online car retailer Autoquake has set back industry confidence in the potential for web-based car sales, specialist online finance broker Carloan4u thinks there has never been a better time to sell car finance online. The introducer, which gets consumers approved for finance before giving them the option to browse its dealer partners stocks online, has seen sales volume grow so fast in the last year that it is having to move into new offices in order to recruit more staff.
Editor’s letter: Keep ’em coming back for more
After years of upheaval in the point of sale business, it seems dealers finally need motor finance companies as much as the lenders need dealers. Car finance has come a long, long way from being just a vehicle for commissions in fact, it is now one of the best tools dealers have for staying afloat in an extremely turbulent consumer market.
Round table: Engine of growth
Motor Finance brought a number of experts together for a round table to talk about the potential for point of sale finance and its role in helping the industry prosper. This month, Motor Finance, in collaboration with Frontline Solutions, invited a collection of point of sale experts to attend the first of 12 round table discussions on the future of the dealer finance market.
Supermarket giants ready to sweep into UK car finance?
Following its reputed upcoming entry into the UK used car market, Tesco is understood to be planning a suite of car finance offerings to complement personal loans from Tesco Bank with rival Sainsburys possibly not far behind. The news emerged at an asset finance seminar held by the National Association of Commercial Finance Brokers on 1 March, where business leaders from two major UK lenders stated that they knew of the supermarket giants intentions to move into the car finance market.
Experts highlight the need for dealers to go online
Despite the demise of Autoquake casting doubt on the viability of web-based car selling, industry experts are highlighting the ability to sell cars and finance online as the greatest opportunity facing the automotive retail sector in 2011. At the most recent round table discussion held by Motor Finance and Frontline Solutions, commentators from finance houses, technology providers and credit information bureaus argued that the inability of many dealers to carry out business online was one of the industrys greatest weaknesses.
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Specialist police unit’s funds cut despite success
The motor finance industrys specialist police unit is to lose government funding as part of ongoing spending cuts, despite contributing to a major drop in motor finance fraud during 2010. The Association of Chief Police Officers (ACPO) vehicle crime intelligence service (AVCIS) will lose its annual £300,000 grant from the Home Office on 1 April. From then on the Finance & Leasing Association (FLA), which has sponsored the vehicle fraud unit since its inception in 2007, will be the services chief sponsor.
AVCIS: Finance companies must share data to stop ports crisis
Vince Wise, ports officer for police car crime unit AVCIS, said that in recent months he has seen more and more vehicles subject to finance and leasing agreements being moved illegally through the nations ports, and that a lack of regulation on export procedures is making life easy for criminals wanting to sell stolen cars overseas.
Brokers link-up with ING for variable rate, high-ticket deals
As demand for prestige cars stays high and interest rates stay low, car finance brokers are keen to step outside regular consumer business channels to offer variable rate products on high-ticket vehicles. DSG Financial Services is the latest to focus on the product, launching new brand DSG Prestige last month on the back of a new broker facility agreed with ING Lease (UK).
Latest dealer finance stats show growth beyond expectations
Latest statistics from the Finance and Leasing Association show dealer finance penetration at 53% of the total market in the 12 months to January, 0.9 percentage points higher than in the 12 months to December 2010. Year-on-year growth in the value of used car finance sold during the month outpaced growth in new car finance, at 17% to £475m compared to 15% to £337m a clear indicator that used car finance remains a growing priority for dealers
Rates stay low but cost of funding rises
Despite the Bank of Englands (BoE) decision in March to keep interest rates low, funding costs for motor finance providers have been on the rise since February, as markets brace themselves for seemingly inevitable rate rises.