Industry news

Consumer car finance new business volumes fell by 5%: FLA

11 November | New Financing

Consumer car finance new business volumes fell in September 2022 by 5% compared with the same month in 2021, according to new figures released by the Finance & Leasing Association (FLA).

The consumer new car finance market reported a fall in new business of 6% by value and 13% by volume in September compared with the same month in 2021. In the first nine months of 2022, new business volumes in this market were 7% lower than in the same period in 2021.

The consumer used car finance market reported new business up 7% by value and 1% by volume in September compared with the same month in 2021. In the first nine months of 2022, new business volumes in this market remained 10% higher than in the same period in 2021.

10 November | Sales

Used car market down in Q3 2022 but EV sales at record high: SMMT

The UK’s used car market fell for the second consecutive quarter this year, declining -12.2% over the three months of July to September, according to Q3 2022 figures published by the Society of Motor Manufacturers and Traders (SMMT).

Some 1,785,447 vehicles changed hands, the first time that Q3 2022 transactions have dipped below two million since 2015, as semiconductor shortages impacted the supply of stock. In the year to date, sales are now down -9.7% to 5,319,482.

Used battery electric vehicle (BEV) sales bucked the trend, however, with Q3 2022 reflecting growth in the electrified new car market as activity rose 44.1% to 16,775 transactions, adding up to 48,032 in the year to date.
The market for used hybrid electric vehicles (HEVs) also grew, up 2.5% in the quarter with 41,479 cars finding new owners, taking the yearly total so far to 119,722.

8 November | Net Zero

EU will require all new cars to be zero emission by 2035

Legislation before EU lawmakers will require all new cars and vans registered in the EU to be zero-emission by 2035.

The proposed legislation includes interim targets requiring a 55% CO2 emission reduction for new cars and 50% for new vans by 2030, compared to 2021 levels.

The EU Parliament and Council also agreed to keep in place a regulatory mechanism for zero- and low-emission vehicles (ZLEV) until 2030, rewarding manufacturers with less strict CO2 targets if they meet certain benchmarks for the sales of zero- and low-emission vehicles, but with the benchmarks increased to 25% for cars and 17% for vans.

Additional aspects of the new agreement included reducing the cap of emission credits that manufacturers can receive for eco-innovations that verifiably reduce CO2 emissions and ensuring that the Commission assesses the progress made towards the zero-emission 2035 goal in 2026.

7 November | Earnings

ALD reports 50% surge in net income during nine months of 2022

ALD Automotive, a leasing and financing services provider, has reported a net income of €918.2m for the first nine months of 2022, a surge of 50.5% compared with €610.1m a year ago.

The Q3 of 2022 contributed €312.1m to the net income versus €258.1m in Q3 2021.

During the first nine months, the funded fleet grew by 5.2% in comparison with 30 September 2021 to 1,454,000 supported by organic growth of 2.8% amid continuing supply chain constraints.

At the end of September 2022, total contracts stood at 1,762,000. Leasing contract and services margins rose 23.6% to €1.25bn from last year. Used car sales have more than doubled to €623.7m in comparison to €277.7m in September 2021. Operating expenses were €624.3m, including the €83.9m for the acquisition of LeasePlan. ALD continues to prepare for the acquisition of LeasePlan in Q1 2023.

4 November | Sales

Van market down a fifth in October as short supply hits deliveries: SMMT

The UK’s new light commercial vehicle (LCV) market fell by -18.4% in October, with 22,386 of the latest vans joining Britain’s roads, according to the latest figures from the SMMT, the UK motor industry body.

Despite robust demand, registrations were at the lowest level for October since 2012 and some -16.5% below the pre-pandemic five-year average, as supply shortages continue to restrict global production and availability.

Deliveries of the most popular large vans weighing more than 2.5 tonnes declined -7.6%, while registrations of mid-weight vehicles weighing up to 2.5 tonnes fell by -50.7% and those weighing 2.0 tonnes or under by -80.7%. 

Meanwhile, there was growth in registrations of pick-ups for the first month this year and 4x4s for the second month in a row.

During challenging operating conditions, battery electric van (BEV) deliveries continued to increase, rising 52.5% year-on-year in October.

4 November | Fraud

Cost of living crisis sees asset finance fraud cases soar

Fraudulent activity for asset finance products has seen a 162% increase, according to leading fraud prevention service Cifas.

As a result of the cost-of-living crisis, the asset finance industry is facing significant challenges, with rising costs causing a surge in fraud. The motor finance sector has been particularly hard-hit, seeing a 13% increase in fraud in the first nine months of 2022, compared to the same period in 2021.

With inflation at a 40-year high, more individuals may look to alter or provide false bank statements or wage slips to inflate their income in an attempt to appear more credit-worthy. This type of false application fraud has risen by 16% within the motor finance sector and now accounts for almost half of all motor finance fraud cases. Identity fraud also presents long-term challenges for the motor finance sector, which has risen by 43% compared to last year.

8 November | People Moves

Cazoo director Neil Smith partners with Autofinity

Former Imperial Cars operations director and Cazoo retail operations director, Neil Smith has partnered with Autofinity in a bid to help dealers implement the technology to pool multiple data sources and create one information silo for each vehicle in stock, according to a press release. 

As a board advisor and associate consultant, Smith will help Autofinity develop its platform and extend its integration capabilities whilst improving the customisation of individual dealership and group requirements. 

He will also be an integral part of Autofinity Transform Consulting, a recently launched service that identifies how dealers can optimise data flow through system integration alongside a dealer systems audit to understand platform value and connectivity, the press release said. Autonfinity connects the multitude of disparate systems at work in each dealership collating vehicle data to create one rich information depository.

In brief

Zeti garners investment from Toyota Ventures

Zeti, a digital finance platform for the transportation industry, has secured an undisclosed investment from Toyota Ventures’ Climate Fund. Institutional financiers use Zeti to deploy capital into clean, connected vehicle fleets through a pay-per-mile (or km or kWh) model. Zeti also offers automated payment management capabilities and sustainability reporting.

TKS and MOTOM join forces to provide vehicle remarketing services

TKS, an asset auditing and risk management specialist, has recently teamed up with vehicle remarketing technology business MOTOM, to provide vehicle remarketing services in the UK. TKS uses technology to digitalise the auditing processes for clients across vehicle stocking, leasing, commercial assets, compliance and risk management.

Company vehicle lease costs on the rise: AFP

Higher Bank of England interest rates mean company car and van lease costs are beginning to increase, the Association of Fleet Professionals (AFP) said. Denise Lane, board director at the industry body, explained that the increases were not uniform but especially appeared to be affecting vehicles already on order.

Geotab teams up with MANTIS Live

Geotab, a technology solutions provider for fleets, has formed an alliance with MANTIS Live to offer integrated telematics and CCTV services. MANTIS Live specialises in connected vehicle camera systems and its solution supports up to 24 cameras to offer a multi-cam view around the vehicle.

Car manufacturing in UK falls 6%

Car manufacturing in the UK fell by 6% in September 2022, the latest data by the Society of Motor Manufacturers and Traders (SMMT) shows. Data shows 63,125 vehicles were produced last month as the output was hampered by severe supply chain issues.

Evolution Funding in tie-up with Motiv Finance

A partnership between Evolution Funding and Motiv Finance will see the two companies join forces to build new technology products for the motor finance market. A collaboration agreement will see the two share elements of their existing credit pre-screening technologies, with plans to co-build a joint solution.

8 November | People Moves

Cazoo director Neil Smith partners with Autofinity

Former Imperial Cars operations director and Cazoo retail operations director, Neil Smith has partnered with Autofinity in a bid to help dealers implement the technology to pool multiple data sources and create one information silo for each vehicle in stock, according to a press release. 

As a board advisor and associate consultant, Smith will help Autofinity develop its platform and extend its integration capabilities whilst improving the customisation of individual dealership and group requirements. 

He will also be an integral part of Autofinity Transform Consulting, a recently launched service that identifies how dealers can optimise data flow through system integration alongside a dealer systems audit to understand platform value and connectivity, the press release said. Autonfinity connects the multitude of disparate systems at work in each dealership collating vehicle data to create one rich information depository.