Consumers are taking greater control of their finances empowered by digital tools and an increasingly active lending sector. It is a challenge the dealer finance community should recognise.
Leasing.com’s data coincides with a strong year for the personal leasing market more broadly. The latest statistics from the Finance and Leasing Association (FLA) showed that the value of personal contract hire (PCH) contracts provided by funders grew faster than any other form of motor finance in the 12 months to August 2021.
With the government now reaching for a 78% reduction in emissions by 2025 and the sale of fuel-based vehicles due to be abolished altogether from 2030, these figures combined with those from Time Finance point towards continued growth in the uptake for wholly electric vehicles.
New PCP allows customers to continue to rely on their current vehicles while waiting for the arrival of their newly purchased car by financing the optional final payment on their current model for 12 months as the worldwide shortage of semiconductors, used in the manufacture of electronic devices, is currently placing great strain on the industry.
The CD Auction platform allows buyers to purchase used car stock with confidence. Stock is presented with a full inspection report, multiple high-quality images and detailed condition reports. The Group has recently expanded its panel of lenders to give dealers more choice when funding stock. Fast-growing V12 Vehicle Finance joins Next Gear Capital and Ratesetter dealer finance.
OEMs struggling to hit CAFE requirements could have a knock-on effect for fleets according to Rivervale Leasing which, like many Leasing Broker Federation members, is experiencing vehicle supply problems. Leasing Broker News last week reported that shortages of semi-conductors leading to vehicle to production delays and the ‘de-contenting’ of electronic equipment, as well as logistics issues, are leaving brokers short of cars and with unhappy customers.
Brokers said they are experiencing supply and lead-time issues although it does vary from OEM to OEM. One broker reported that a prestige brand recently cancelled up to 100 orders due to be built this year and decided to close 2021/22 model year production on two models altogether.
Providers may even tighten up their lending criteria further as the pandemic ebbs following a marked reduction in appetite for lending near to the beginning of the crisis which many assumed would be relaxed over time.
It has launched a fully closed group ‘white label’ timed auction platform that has made a significant impact in reducing selling days and guaranteed new retail finance underwriting opportunities for its finance house partners.
