All articles by Fred Crawley
Fred Crawley
Reaction to ‘motorists’ budget’
The motor finance and fleet industries have had a broadly positive reaction to the 2011 budget announcement, although many are sceptical about the long-term benefits their customers will derive from the so-called ‘motorists budget’ As expected, the Chancellor has abandoned Aprils 1p increase in fuel duty, but surprised everyone by delaying the inflation increase until next year and in fact reducing duty by 1p
Sutton warns of regulation shake-up
In an address to this years Finance and Leasing Association (FLA) dinner, Black Horse managing director and FLA chairman Chris Sutton warned recent implementation of the Consumer Credit Directive would be only the first in a series of regulatory hurdles for the motor finance industry to tackle. Sutton continued to explain that the upcoming transfer of regulatory responsibility from the Office of Fair Trading to the new Financial Conduct Authority (which will replace the FSA), would be just the beginning of “the biggest shake-up in consumer credit regulation for a generation”.
Car lenders feel more PPI heat from FOS
While motor finance companies are seeing fewer customers resort to the Financial Ombudsman Service (FOS) to settle grievances about car finance agreements, the number of complaints related to payment protection insurance (PPI) continues to climb on the back of relentless action by claims firms. PPI complaints made up 50% of all issues forwarded to the FOS in the years final quarter, up from 45% in the third quarter of 2010 and 34% in the second quarter, the first quarter in which the FOS began publishing complaint figures by product association.
Diversity behind strength of UK car finance
The UK motor finance industry achieved a 5.1% greater annual lend in 2010 than in 2006, according to data published by market research company Finaccord. The report, Automotive Finance and Leasing for Consumers in Europe, highlights the resilience of British motor finance compared to the industries of other countries.
Dawkins to lead Capitas Vehicle Finance
Gary Dawkins, former sales manager at Fortis Lease, will lead asset finance broker Capitas Finances new vehicle financing subsidiary, Capitas Vehicle Finance Ltd (CVF), taking a shareholding in the business in the process Having developed experience of funding prestige vehicles at Fortis, Dawkins will develop CVFs offering to dealers looking to finance cars for high net worth customers Its the end of the market where there remains a real need for the expertise and flexibility a broker can offer, Dawkins commented.
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PPI complaints up but HP in the clear
The Financial Ombudsman Service (FOS) received 15 percent more complaints against financial institutions in the second half of 2010 than in the preceding six months, with motor finance companies seeing their share of the increase. Of all motor finance providers covered by the statistics published by the FOS, only BMW Financial Services and Banque PSA Finance saw declines in the number of complaints received However, the majority of complaints connected to motor finance companies were related to Payment Protection Insurance (PPI), reflecting the continuing increase in action by Claims Management Companies against providers of the product.
ING variable deals mean success for brokers
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). The DSG Prestige website features an online calculator for variable rate finance, which managing director Richard Hoggart says is still by far the best method of funding a big balance for this type of buyer.
February registrations stoke industry confidence
New car registrations in February fell 7.7 percent compared to the same period last year, according to latest statistics from the Society of Motor Manufacturers and Traders (SMMT). In total 63,424 units were sold slightly more than expected, especially given the absence of a scrappage scheme this year.
Tesco eyes the car finance market
Following its reputed upcoming launch 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. 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.
Police motor finance unit to survive cuts
The motor finance industrys specialist police unit is to lose government funding as part of ongoing spending cuts, but will continue to operate at full capacity thanks to sponsorship from private institutions including the FLA. AVCIS, the vehicle crime intelligence service run by police strategic body ACPO, will lose its annual £300,000 grant from the Home Office following 1 April