All articles by Fred Crawley
Fred Crawley
Direct lenders begin to confirm competitive intentions
HP and PCP providers look set to face stiffer competition from direct loan providers in the second half of this year, as the high street begins its return to the car finance market Competitive pressure from direct lenders dropped massively in the wake of the credit crunch, leaving an opportunity for point of sale finance providers to achieve greater penetration into UK car sales
Smaller dealers still committed to finance sales
Contrary to recent concerns expressed by several companies in the broker sector, reports from industry bodies suggest that enthusiasm for selling finance among the UKs smaller dealerships remains as strong as ever. Asked whether the Retail Motor Industry Federation had heard any reports of smaller member dealers decreasing or even cutting their involvement with finance providers, director Sue Robinson said that it was not an issue she had come across.
BMW introduces 50:50 finance offer
BMW Financial Services (BMWFS) has announced a new 50:50 product, which allows customers to pay 50% of a car’s value up front, then absolutely nothing for two years, following which they may either pay the balance to take ownership of the car, part exchange the car for a new one, or hand it back to the dealer
FLA motor finance statistics
Car finance sales better than expected total value of finance up 1% year-on-year despite number of units financed falling 5%. Marchs monthly statistics will be the last distorted by scrappage, since the scheme came to an end at the end of March 2010. While the total value of used car finance has been up year-on-year for several months, March 2011 saw a drop of 3% compared to the previous year.
Approval rates climb in non-prime
Approval rates for non-prime finance applicants are on the rise due to increased funding in the sector, better decision-making software and greater awareness of credit scoring processes among customers, lenders have reported Louis Rix, director of brokerage Carfinance247, said that 26% of non-homeowner applicants were approved for car loans in April this year, compared to just 15% during the same period last year.
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Future of motor finance brokers
Motor Finance brought a number of experts together for a round table to discuss the currentstatus of brokers and to discuss and explore what the future holds for the profession. This month, Motor Finance, in collaboration with Frontline Solutions, invited a collection of point of sale experts to attend the third of 12 round table discussions on the future of the dealer finance market. The following pages highlight the debate and discussions, in which brokers, lenders and independent consultants made clear their feelings and opinions on the important issue of what the future holds for the UKs motor finance brokers.
Dear diary: Chinese move, VWFS climbs
It has been a bit of a see-saw month for troubled Swedish car maker Saab as Chinas auto manufacturers um-ed and ahh-ed about investing in the marque. First to play their hand was the independent Hawtai Motor Group which announced in early May that it was shelling out 150m (£130m) to save Saab from collapse in return for a 30% stake in Spyker, the brands owner.
Truly special
Consumer finance house Southern Finance has found a real niche in the market The term niche business gets used a lot in the motor finance industry, but few companies fit the description so well as Southern Finance.
HPI Crushwatch
Recovery update:Total HPI CrushWatch Enquiries 4,688Total Finance Hits 431Value of Finance Hits £2,504,195 HPI Crushwatch is an online service aimed at helping lenders reclaim vehicles with outstanding finance before they get crushed
Shoosmiths launches full service collections product
After running a full service collections service for a key client over the last two years, national law firm Shoosmiths is to offer a Portfolio Management product to the wider motor finance market Shoosmiths is not the first organisation to offer integrated legal and collections services Warwickshire-based solicitors firm Wright Hassall recently began offering its services as a Debt Collection Agency, while DCAs such as Close Credit Management have been developing their legal offering in recent months.