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In February, Motor Finance reported that Volkswagen would be passing on any WTO or other tariffs associated with a no-deal Brexit onto customers via an increase in car prices. The company said that all VW, Seat and Skoda cars ordered on finance and allocated to customers before 7 February would be honoured at existing prices, regardless of tariffs or levies that result from Brexit.  VW also said any car that was arranged for sale and was in the UK by 28 March would also have its price honoured.

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In October the FCA set out plans to ban discretionary commission models used by some car retailers and brokers in the motor finance market. Increasing Difference in Charges, Reducing DiC and Scaled commission models were highlighted in the FCA’s review of the motor finance industry earlier in the year – the regulator said this was a “serious concern” for the market. According to the FCA, such commission structures “create an incentive for brokers to act against customers’ interests”.

Following the FCA’s consultation on commission models, chief executive of MotoNovo Finance, Mark Standish, called for a reinvention of the motor finance market. Standish said FCA recommendations point to fundamental changes in the commission model with a dealer’s capacity to set customer interest rates due to be banned. With the new room for change, Standish sees this as an opportunity for the dealer’s sales and financing model to reinvent itself – making it trusted by and relevant to today’s informed and protected car buyer.

The V12 Vehicle Finance online dealer platform was launched by Secure Trust Bank in June. The offering features wholesale finance, stock sourcing, retail funding and service financing. The platform has been designed to help dealers source and fund vehicles through various physical and digital auction channels. V12 partnered with Aston Barclay Group for the launch, integrating its proposition for dealers.

Back in July, British Car Auctions (BCA) launched the online platform ‘cinch’ for finding, buying and selling used cars. The platform was designed to raise the quality of leads passed to dealers and car supermarkets. Customers are able to search for used cars based on their lifestyle needs, finding a vehicle from the site’s trusted dealer network. Cinch only lists cars under seven years old that have covered 70,000 miles or less.

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The V12 Vehicle Finance online dealer platform was launched by Secure Trust Bank in June. This featured wholesale finance, stock sourcing, retail funding and service financing. It was designed to help dealers source and fund vehicles through various physical and digital auction channels. V12 partnered with Aston Barclay Group to integrate its proposition for dealers. The proposition was branded as Aston Barclay Stock Funding, offering wholesale and exclusive stock funding services to 6,000 Aston Barclay buyers. This includes 100% of the vehicle’s value, the delivery charge and refurbishment costs up to £1,000.

Following its launch in Germany in 2017, online marketplace for the used car market Heycar launched in the UK in August. Backed by Volkswagen Financial Services and Daimler Mobility, Heycar launched with an inventory of more than 100,000 listed vehicles from over 50 automotive brands at 1,400 dealerships. All vehicles listed on the platform come with a warranty, have less than 100,000 miles on the clock and are less than eight years old. The platform was designed to overcome consumer scepticism of used cars, through an online portal users can search for and find their used car, complete with a finance quote.

Year in review