In brief

23 June 2021

The average used car financed by Startline Motor Finance is now both older and more expensive than at the start of the pandemic.

Startline has seen the average price of a used car grow from £7,837 in May 2020 to £8,699 in May this year – representing an 11% increase. Over the same period, the average age of the car for which the company has paid out hire purchase motor finance increased from 35.2 months to 38.2 – up by 8.5%.

Startline chief executive Paul Burgess said: “These relatively large shifts are indicative of a number of trends that are underway both in the used car market generally, and as a result of the pandemic directly.

“Probably the biggest of these is the current used car supply situation, which means that vehicle retailers are having difficulty accessing stock. Prices are rising across models of all types and ages as a result.”

21 June 2021

The current boom in used car prices is likely to continue into the third quarter of 2021, according to the Vehicle Remarketing Association (VRA).

VRA chair Philip Nothard said the view of both vehicle valuations experts and dealers indicated that there remained headroom for further rises on top of almost double-digit percentage increases in recent months.

“We recently held a webinar with experts from AutoTrader, cap hpi and Cazana, and the general consensus was that the used car sector has never seen anything like the current conditions. We are in a kind of ‘perfect storm’ where stock is in very short supply, demand is high and buyers are ready to spend freely.”

18 June 2021

Most car retailers saw their strongest ever sales month in May, trading around 14% above 2019 volumes, according to the latest Auto Trader figures.

Auto Trader expects the strong levels of demand to continue for much of 2021, with calculations based on the average ownership cycle of a car being extended from 3.5 years to 4.2 years as a result of the pandemic.

With this in mind, Auto Trader said: “If the UK car parc of 35.1m cars had turned at the typical frequency observed over the last 10 years, there would have been circa 10 million new and used transactions in 2020, instead of the 8.3 million that took place.”

17 June 2021

Driverama has signed a partnership with automotive workshop chain stop+go as it prepares for the launch of its retail car buying operations in Germany.

Through the partnership, Driverama will open ‘store in store’ drop-off branches within stop+go sites. The first drop-off micro-branch is due to open in Dusseldorf in July, before being rolled out to more than 20 stop+go locations by the first half of 2022.

Customers receive an initial online valuation of their vehicle after entering details such as model, age, condition and mileage. They can then book an appointment to drop the car off at a Driverama micro-branch, where an inspection is carried out and a final valuation given.

17 June 2021

Independent motor finance broker Evolution Funding has appointed Daniel Reeve as its chief technology officer.

Reeve joins Evolution with over 20 years’ experience in technology and development, with focus on delivering high-performance technology platforms, software projects and digital solutions.

Paul Saggar, chief innovation officer at Evolution, said: “We are delighted to further strengthen our technology offering with this exciting appointment. We are fully committed to delivering best-in-class digital finance journeys for our partners and their customers, and we continue to invest in order to support our growth plans.”

Prior to joining Evolution, Reeve held a number of senior technology appointments, including chief technology officer at a UK car park management company and at Capita (Travel and Events), and technical director at Fraedom, part of Hogg Robinson Group.

16 June 2021

Car comparison site carwow has confirmed the acquisition of used car buying platform Wizzle for an undisclosed fee.

The acquisition will help carwow users sell their current car once they have configured their new vehicle on the platform.

Wizzle was designed to help dealers appraise and value used cars that had been driven onto their forecourts. Being online, customers have the ability to profile their car and share it with prospective dealer buyers.

There are currently more than 2,000 dealers currently on the Wizzle platform, buying more than 1,500 cars per month.

Using its current ‘Sell Your Car’ feature, customers are only able to receive a single offer from a single provider. As a result of the acquisition, carwow can provide multiple bids and prioritise offering cars directly to dealer partners.

14 June 2021

The FCA’s consultation on Consumer Duty, placing more explicit and higher expectations on firms’ standard of care towards customers, has implications for finance and insurance in the motor retail sector.

This is according to Matthew Briggs, group chief executive at AutoProtect Group, who added that embracing the good outcome principle now in a business’s culture, processes, pricing and products already makes sound commercial sense.

The FCA’s aim with the Consumer Duty is to “drive a shift in culture and behaviour for firms, meaning that consumers always get products and services that are fit for purpose, that represent fair value and are clearly communicated and understandable”.

By doing this, the regulator hopes to help consumers make good choices and be confident that they will receive good customer service.

9 June 2021

Combined enquiries for electric, hybrid and plug-in hybrid vehicles have overtaken those of diesel vehicles for the first time on the Leasing.com platform.

In January 2020, the combined total enquiries for electric, hybrid and plug-in hybrid vehicles were three times lower than that of diesel engines, highlighting the rapid pace of change. Petrol remains the most prevalent fuel type for now.

The data also revealed that UK drivers expect to cover 20% fewer miles in the next 12 months, even with a return to ‘business as usual’ after the Covid-19 pandemic. This suggests that a shift in working patterns may have brought about a permanent change in the way the UK public travels.

The average annual mileage for leasing enquiries now stands at 8,000 miles, down from 10,000 miles before the pandemic.

4 June 2021

UK new car registrations reached 156,737 units in May, representing an almost eightfold increase on the same month last year, but down 14.7% on pre-pandemic May 2019.

This is according to the latest figures from the Society of Motor Manufacturers and Traders, which found that uptake was in line with the most recent industry outlook, published in April, which sees the sector anticipating around 1.86 million registrations by the end of the year.

Fleet registrations grew twice as fast as private purchases in the month, with large fleets accounting for 50.7% of all new vehicles being sold, demonstrating improving business confidence in the market.

Battery electric vehicles saw their market share decline from 12% a year ago to 8.4% in May this year.

3 June 2021

IDS has confirmed the appointment of Brendan Gleeson as chief strategy officer, effective from 1 June.

In the newly created role, Gleeson will help to identify industry and technology trends and translate them into strategic insights for the company.

Gleeson brings nearly 30 years of industry experience to the role, with a successful track record and vision in developing and executing strategies, international expansions and technology product innovation.

IDS chief executive David Hamilton said: “Brendan’s innovation leadership and strategic direction at White Clarke Group led to the development of a world-class portfolio of solutions to meet the ever-changing needs of the automotive, wholesale and equipment finance marketplace.”