Demand slowly returns to UK car finance market as dealers shift to online sales

The UK consumer car finance market saw a small improvement in demand during May compared to April, although the market is still a fraction of its size compared to the same period last year. The total value of advances was down 78% in May, compared with 2019, but this represents an improvement on April, when the market collapsed by 94% year-on-year at the height of the Coronavirus crisis. New business volumes in the consumer new car finance market fell back 86% during May 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members was 94.3% in the 12 months to May 2020. The consumer used car finance market reported new business volumes 73% lower in May 2020 than in the same month in 2019.

Demand slowly returns to UK car finance market as dealers shift to online sales

Jul 03, 2020

The UK consumer car finance market saw a small improvement in demand during May compared to April, although the market is still a fraction of its size compared to the same period last year. The total value of advances was down 78% in May, compared with 2019, but this represents an improvement on April, when the market collapsed by 94% year-on-year at the height of the Coronavirus crisis. New business volumes in the consumer new car finance market fell back 86% during May 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members was 94.3% in the 12 months to May 2020. The consumer used car finance market reported new business volumes 73% lower in May 2020 than in the same month in 2019.

Market Data

Alfa - LIBOR reform: The impact for Auto & Equipment Finance Providers

Jun 17, 2020

Asset finance software and services provider Alfa has published a new whitepaper that provides in-depth guidance on LIBOR reform. LIBOR rates are used by auto and equipment finance businesses globally as a benchmark to determine customer interest rates. However, LIBOR, EURIBOR and other such rates carry inherent shortcomings that have led to their planned replacement by alternative risk-free rates such as SONIA and SOFR. In the whitepaper, called LIBOR Reform: The Impact for Auto and Equipment Finance Providers, Alfa analyses the changes, why they are happening and what impact they will have on asset finance providers.Issues covered include how asset finance company systems must be enhanced to accommodate the changes.

Bynx Pricing Reviews

Bynx - Asset Finance Pricing Review - Russia's auto revolution

Dec 12, 2019

      AVAILABLE NOW, FREE OF CHARGE Tom Seymour takes a look at how leasing and the fleet market are developing in Russia. While new cars sales have stalled, leasing is gaining popularity.  Russian drivers are showing a strong interest in car sharing services, although support for other new initiatives, such as electric vehicles, is very low. It is hard to predict how the Russian auto market will develop. As commentator Ralph Morton points out in his opinion piece, the runaway growth in personal leasing is starting to have an impact on fleet leasing. Insights into the so-called “death of diesel” on car sales and residual values. Dean Bowkett takes a look at how new powertrains are taking hold across Europe, and the factors influencing the rise of electric vehicles. The latest stats from Experteye’s European Leasing Index Report.   CONTRIBUTIONS FROM   Sovetkina Zoya, leasing lead, Expert RA Dmitriy Strashkov, head of corporate finance, VWFS Rus Alexander Mikhaylov, chief executive, Europlan Ralph Morton, Editorial Director, Morton Media

 

Technology Reports

Companies in the finance industry invited to support major research project into servitization

Jan 15, 2020

A major new research project will take a detailed look at how the sale of services linked to asset-backed financing can offer a compelling opportunity for auto and equipment finance companies so they can develop new income streams and profit growth. The servitization research project, developed by the International Asset Finance Network, in partnership with GrowCap, will look at how technology can increase customer satisfaction and encourage retention, while also building a competitive advantage over other more traditional finance organizations. It is looking for finance company partners to support the project. Participants will be able to use the results to develop their future business strategy.