The discussion around limited discretion has arisen because the FCA in its Final Rules that; ‘brokers would be able to decide or negotiate the rate with the customer, even if they are not rewarded for it.’
Startline Motor Finance standsby its recent assertions that dealers who had made their click-and-deliver and click-and-collect processes as easy to use as possible were performing best.
Experience from the first two lockdowns, plus the prospect of the national vaccination programme, means that the used car sector can be reasonably confident about its prospects for the next few months if it meets buyer needs.
Introduction of new restrictions during October to curb the growth in coronavirus cases has led to a softening in demand for consumer car finance. The fall in the used car finance market in October was the first since May of this year.
Mann Island Finance Managing Director John Hughes is keen to ensure that dealers recognise that the positive approach to dealer finance as a facilitator of sales seen in recent weeks can pay long-term dividends.
Between January and September this year, Alphera has seen a 75% year-on-year growth in user numbers for its MyFinance platform which gives customers the ability to ‘self-serve’ and manage their finance agreement online. More than a quarter of its UK customers are managing their finance agreements online.
Much of the industry has moved on from simply servicing the needs of ‘captive’ customers who need finance to buy a car, and Tara Williams is clear that any legacy issues about finance need to be addressed. Primarily, these include optimising finance income per transaction and a light touch on transparency
The consumer used car finance market reported growth in new business of 2% by volume and 10% by value in August 2020 compared with the same month in 2019. In the eight months to August 2020, new business volumes in this market fell by 22% compared with the same period in 2019.
Personal accountability for a dealer’s finance activities that is part and parcel of SMCR will come into sharp focus in 2021 as a new era of transparency comes into force for motor finance from January 28th.
The used car market is currently booming, but there are two longer term, interrelated trends underway that need to be considered – lender appetites are changing and the needs of customers are also shifting.
