In brief

22 October 2021

Values in the used car market have risen by up to 57% in the last two years, according to the latest data from AA Cars.

In some cases, demand has been so strong that prices have risen with age. For example, a three-year-old Mini Hatch now costs 57% more than a model of the same age cost in 2019, and a five-year-old model currently costs 15% more than a three-year-old car did in 2019, meaning it has gained in value despite being two years older.

AA Cars chief executive James Fairclough said: “With the exception of houses and some classic cars, things rarely go up in value as they age, yet price growth in the used car market is so strong that some in-demand models are appreciating even as they sit on the driveway.

“But even though average prices have risen sharply over the past two years, it is still possible to get a good deal on the second-hand market.”

22 October 2021

Close Brothers Motor Finance has partnered with Auto Trader to launch a data tool that will provide dealers with insights into consumer demand in the market.

The tool will be powered by Auto Trader and rolled out by Close Brothers, collecting and analysing dealer forecourt statistics. With this information, dealers will be able to adapt stocking and pricing strategies to better reflect market conditions.

The tool will be available to Close Brothers’ funded dealer partners through its Account Manager platform.

Close Brothers Motor Finance MD Seán Kemple said: “In an increasingly competitive market, using data to maximise opportunities and streamline business is a natural next step for our dealer partners.

“At a time of rapid change and increased uncertainty, it’s never been more important to understand true consumer demand and price accordingly, so such a tool will give them the edge they need.”

20 October 2021

Mercia Fleet Management, the recently announced fleet management division at EV salary-sacrifice specialist Fleet Evolution, has launched a new grey fleet service with a free offer for the first 10 companies that sign up.

The new grey fleet service is designed for businesses where significant numbers of employees use their own vehicles on company business and then reclaim business mileage at up to £0.45 per mile, under the Approved Mileage Allowance Payments scheme.

Andrew Leech, MD at Fleet Evolution and head of the new fleet management division, said: “Our key objectives with Mercia Grey Fleet Management are to mitigate risk, as well as assessing the cost-effectiveness to the business.”

“Allowing employees to use their own vehicles exposes the business to considerable duty-of-care risks as, generally, employees’ own vehicles are in worse condition than new – typically they are eight years old – and are often without adequate servicing or relevant business use insurance.”

20 October 2021

The pandemic has created a “new digital divide” for dealers, between those that have adopted relatively rudimentary and more advanced online customer journeys, motor retail technology provider iVendi has reported.

CEO James Tew explained that Covid had forced dealers to accelerate their digitisation plans and that the sector had made huge progress, with a much greater number of solutions in place – but the capabilities of the technology adopted varied widely.

He said: “It’s no exaggeration to say that dealers as a whole have moved on perhaps five years in 18 months as a result of the pandemic, thanks to the need to adopt technology that could handle the effects of lockdowns and remote selling.

“However, those dealers that have adopted e-commerce products will have seen varied results and this is where we have seen a new digital divide becoming apparent.

“Some technology is well established and relatively good at simply generating applications and online reservations. These systems do not really achieve much beyond these limitations, but that’s not a criticism – for some dealers, right now, that is as much as they want to achieve online.

“On the other side, others have really looked to reap the rewards of digitisation and now have in place comprehensive online customer journeys that are able to replicate almost every process step that might take place in a face-to-face showroom sale.”

Tew added that these more sophisticated and effective solutions required a change in mindset and required dealers to examine their business models in detail.

“Key questions need to be asked including ‘What processes need to change or adapting to optimise a digital purchasing channel?’ and ‘How do I handle more complex situations such as adjusting vehicle and part exchange price, upselling warranties, managing finance declines, negative equity and more?’,” he said.

14 October 2021

Auto Trader has partnered with Experian, giving dealerships and brokers a more insightful view of a potential customers’ affordability.

Sellers on the Auto Trader AutoConvert platform will have access to Experian bureau data, improving credit-risk decisioning processes and providing more insight into a customer’s suitability for lending. Only applications that pass borrowing criteria will be submitted to lenders and dealers.

Auto Trader will also work with Experian to deploy an enhanced car finance eligibility service. For consumers, it will mean they have a clearer picture of the financing options available to them – without it affecting their credit score – giving them the confidence to go ahead with a purchase.

Experian Automotive UK & Ireland MD Gerardo Montoya said: “Experian data insights are renowned for helping businesses from across sectors make faster, more accurate, and better decisions, bringing enormous benefits to both them and their customers.”

12 October 2021

Blue Motor Finance has partnered with digital payment provider Banked to offer customers a new way to pay directly using their online banking app.

The functionality has been integrated with existing payment capabilities, with customers receiving a Request to Pay link to their email or phone, linking them to the payment function on the banking app.

There is no form for customers to complete; customers select their bank to access their online banking platform and authorise the payment. Funds are transferred instantly from the customer’s account to Blue.

Initially piloted to improve the speed and efficiency of collecting missed payments and arrears, Blue is looking to introduce the technology to other areas of the business, with settlement payments as a next step.

Since its introduction, Blue has seen more than double the number of customers making payments using a payment link in comparison to traditional methods such as calling customer services.

11 October 2021

The UK consumer car finance market saw a 10% decline in August 2021 compared with the same month in 2020, according to statistics from the Finance and Leasing Association (FLA).

The consumer new car finance market reported a fall in new business of 13% by value and 18% by volume in August when compared with August 2020. In the eight months to August 2021, new business volumes in this market were 16% higher than in the same period in 2020.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “Supply issues in the new car market caused by the shortage of semiconductors continue to hamper the recovery of the automotive industry following the pandemic.

“New business volumes in the consumer new car finance market fell for a second consecutive month in August, and the near-term outlook is likely to be weaker than previously expected.”

6 October 2021

Consumers are still looking for in-person interactions that online purchases cannot provide when buying a used car, a survey by MotoNovo Finance has revealed.

The move to online for used car buying has eased in the post-lockdown environment, and expectations of what can be done online have declined from last year.

While online is seen as the place where people research options and discover the vehicle of interest to them, appetite to complete the purchase entirely online is low, with consumers highlighting the importance of human interactions.

Just 7% of respondents said they would commit to a used car purchase entirely online. However, expectations for the ability to complete the car buying journey online are declining, the survey found.

MotoNovo MD Karl Werner said: “Online clearly has a critical role in the car-buying journey, but very largely, regardless of age, it is very evident from this research that the majority of people prefer to talk to a person about a used car purchase.”

1 October 2021

Vehicle auction and remarketing specialist Aston Barclay has reported a strong September, with used car conversions and prices reaching record levels.

First-time conversion rates across the board were at a record of 92.5%, 3.6% ahead of August, a previous record, and 4.14% ahead of September 2020.

Ex-fleet stock continued its strong performance, with 100% conversions a regular occurrence, and the most recent sale at Donington reporting a price performance average of 111% of CAP Clean.

On a typical £10,000 fleet car, that means fleet vendors have made an extra £1,100 during September, although the volume of stock being offered for sale remains at around 60% of pre-semiconductor-crisis levels.

“After August’s summer holiday slowdown, dealers have come back into the market very strongly. The shortage particularly of ex-fleet stock is driving conversion rates and prices to record levels, although all areas of the market including high mileage stock is experiencing a price increase,” explained Martin Potter, MD – customer at Aston Barclay.

20 October 2021

Car finance provider Alphera Financial Services has launched a new website, featuring new brand imagery as part of the company’s new identity. The brand refresh comes as Alphera celebrates the milestone of 15 years in the UK car finance market.

The website redesign consists of a new content management system, reporting tools and improved search engine optimisation. Alphera will also continue to offer online services and information to its partners through its ‘Partner portal’ as well as its ‘Content’ and ‘Training’ hubs.

Preston Rogers, director at Alphera, said: “The last 18 months has shown that people are very comfortable with the accelerated move to digital platforms. Most of our website users last year were, in fact, private customers rather than dealer partners, so we felt our 15th year was the perfect opportunity to invest in a re-design and make our online presence as customer friendly as possible.”