New ‘Care by Volvo’ subscription service launches in UK

Care by Volvo – the Swedish car makers’ subscription service – has launched in the UK, offering flexible access to Volvo’s entire range of models. With prices starting at £559 a month, the service is being rolled out nationwide following successful regional trials. According to Volvo Cars, this represents the most flexible service of its kind in the UK, with no sign-up fee and no fixed-term agreement.

New ‘Care by Volvo’ subscription service launches in UK

Sep 21, 2020

Care by Volvo – the Swedish car makers’ subscription service – has launched in the UK, offering flexible access to Volvo’s entire range of models. With prices starting at £559 a month, the service is being rolled out nationwide following successful regional trials. According to Volvo Cars, this represents the most flexible service of its kind in the UK, with no sign-up fee and no fixed-term agreement.

Pandemic to have long-term impact on US subprime auto market, says new report from Davis & Gilbert

With the subprime auto loan performance expected to deteriorate, many respondents to the latest Credit Chronometer from Davis & Gilbert LLP predicted that the pandemic would have a long-term impact on the sector. The report – named Participants’ Expectations in a Time of Crisis – revealed that unemployment, a key indicator of loan performance, has reached historic levels as a result of the pandemic and led to widespread forbearances. However, respondents expected deal structures to hold and reacted with moderation to the uncertainty plaguing the market. Market participants of the study believed that the projected performance of a subprime auto securitization remained the most reliable indicator of its success. Although credit ratings had declined since 2019 as a success factor, indicating a reliance by participants on their own review of data.

Pandemic to have long-term impact on US subprime auto market, says new report from Davis & Gilbert

Sep 16, 2020

With the subprime auto loan performance expected to deteriorate, many respondents to the latest Credit Chronometer from Davis & Gilbert LLP predicted that the pandemic would have a long-term impact on the sector. The report – named Participants’ Expectations in a Time of Crisis – revealed that unemployment, a key indicator of loan performance, has reached historic levels as a result of the pandemic and led to widespread forbearances. However, respondents expected deal structures to hold and reacted with moderation to the uncertainty plaguing the market. Market participants of the study believed that the projected performance of a subprime auto securitization remained the most reliable indicator of its success. Although credit ratings had declined since 2019 as a success factor, indicating a reliance by participants on their own review of data.

UK consumer car finance returns to growth in July

New business in the UK consumer car finance market grew 19% by value and 9% by volume in July 2020 compared with the same period last year, according to the Finance and Leasing Association (FLA). The increase marks a return to growth compared to the height of the Covid-19 pandemic, as volumes were down 30% during the previous seven months. The figures for July, a traditionally a quieter month for UK car finance, bode well for the key registration month of September.

UK consumer car finance returns to growth in July

Sep 09, 2020

New business in the UK consumer car finance market grew 19% by value and 9% by volume in July 2020 compared with the same period last year, according to the Finance and Leasing Association (FLA). The increase marks a return to growth compared to the height of the Covid-19 pandemic, as volumes were down 30% during the previous seven months. The figures for July, a traditionally a quieter month for UK car finance, bode well for the key registration month of September.

EMEA

UK takes poll position with strongest used car pricing growth of 1.7% in July, says INDICATA

Sep 03, 2020

Used car pricing in the UK rose by 1.7% on average in July alongside a 22% plummet in used stock in the market compared with 1 April 2020, pushing the UK to strongest position in Europe in July, according to INDICATA’s latest market watch insights report. As a result of the stock shortage, sales fell by 1.8% in July compared to the 3.7% rise in June. According to the report, electric and hybrid cars continued to increase their market share, with sales coming out of lockdown up 53.5% and 51.2% year-on-year respectively, while six-nine year old used cars continued to be the most popular amongst consumers.

Americas

Experian reveals US delinquencies holding up despite plummeting car sales

Jun 18, 2020

US automotive insight provider Experian, provided an in depth look at outstanding loan balances, total risk distribution and delinquency rates for the first quarter of 2020. Furthermore, in the Q1 2020 State of the Automotive Finance Market, Melinda Zabritski, senior director of Experian Automotive Financial Solutions, observed April’s originations to see how the pandemic is impacting auto lending. Offering information from Experian’s consumer credit database, Zabritski undertook a review of all open automotive loans and leases, regardless of when they originated. Total loan balances decreased year-over-year by $12 billion in Q1 2020 compared to the year before, falling to $1.168 trillion from $1.181 trillion.

Asia Pacific

Toyota Finance New Zealand partners with Ephesoft on digital transformation initiative

Jan 28, 2020

Toyota Financial Services New Zealand (TFNZ) has partnered with Ephesoft to drive its automotive loan application and settlement processing. TFNZ will use Ephesoft’s Transact software within its loan operations team to automate the classification and processing of key forms and documents. The Transact platform uses artificial intelligence, machine learning and cloud-based services to automate document processing and will integrate with the finance company’s existing loan origination system.