Industry news

Used car prices hit record levels in September

1 October | Statistics

Aston Barclay 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% which is 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 slow down, 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, Aston Barclay’s managing director – customer.

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28 September | Fuel crisis

Demand for EVs spike as fuel supply crisis intensifies 

Demand for electric vehicles (EVs) has spiked over the past week amid the nationwide fuel supply crisis, according to the latest industry statistics.

Online car marketplaces Autotrader and heycar have picked up on the trend through customer behaviour on their respective online platforms.

Auto Trader reported that searches for electric cars jumped by 60% on Saturday and Sunday of last week. Meanwhile, heycar reported that leads on EVs sent to its dealer partners more than doubled in the past week, a 159% increase compared to the same period last year.

Despite the growth in interest, Ian Plummer, commercial director at Auto Trader, doubts it will represent a major step towards achieving the government’s ambitious targets – as EVs remain substantially more expensive than their petrol or diesel counterparts, and fears of an inadequate charging infrastructure remain.

13 September | Inclusivity

MotoNovo Finance MD Karl Werner joins the Automotive 30% Club

Karl Werner, the managing director of MotoNovo Finance, has become the latest business leader to join the Automotive 30% Club. The 30% Club is the voluntary network of leaders from automotive companies in the UK who support greater inclusion in the industry.

Werner, who replaced Mark Standish as managing director in August, said he was “hugely pleased” by his membership in the club.

“Having worked in automotive retailing and motor finance all my working life, I’m hugely pleased that one of my first actions as managing director of MotoNovo is to join the Automotive 30% Club. This is an organisation that not only truly understands our market but also provides inspirational leadership and energy that will make a positive difference to our industry.

“I eagerly look forward to playing an active part to ensure I meet the objectives of the Club,” said Werner.

14 September | M&A

Renault Group & RCI Bank invest in heycar

The heycar Group, which owns online car marketplace heycar, has gained two new investment backers – Renault Group and its subsidiary RCI Bank and Services. Heycar has not disclosed how much its capital will increase by as a result of its new backers.

“We are very much looking forward to working together with heycar. In the space of just a few years, this platform has become a major player in online vehicle sales,” said Luca de Meo, chief executive of the Renault Group.

“This agreement fits seamlessly into Renault Group’s strategy of adding value at every single stage of a vehicle’s life cycle. Our aim with this partnership is to increase the competitiveness of our sales network along the entire vehicle value chain – from purchasing to aftersales. This involves services such as maintenance and marketing, as well as the sale of financing and services.”

7 September | Subscription

Volvo subscription service accounts for 15% of sales in first year 

Volvo’s subscription service has delivered more than 2,500 car sales to the company in its first year of business, accounting for approximately 15% of Volvo’s total retail sales – exceeding the projected target of 5%.

The figures also showed a strong uptake of electric vehicles (EVs). One-third (33%) of subscriptions were for Volvo Recharge plug-in hybrid electric (PHEV) models, while over half (53%) of the subscriptions for the XC40 compact SUV were for plug-in hybrid electric or full battery electric (BEV) versions. The service is also effective at reaching new customers, with 91% of its customers being new to the Volvo brand.

Conor Horne, UK head of online sales at Volvo, said: “It’s clear there are also drivers keen to make the switch to the new generation of electrified cars we’re bringing to the market. The results confirm that the Care by Volvo subscription service represents the future of our retail business and is helping bring new customers to our brand.”

30 September | People moves

Alphabet & BMW Financial Services confirm leadership changes 

Alphabet (GB) and BMW Financial Services (GB) has confirmed a series of leadership changes that will come into effect over the coming months.

Current BMW Financial Services (GB) chief executive Mike Dennett will assume the role of chief executive for Alphabet in the UK, effective from 1 January 2022.

Nick Brownrigg, chief executive of Alphabet (GB) since 2016 will take up a new position as chief executive of BMW Group Financial Services in the Netherlands, a newly created role which combines responsibility for both the retail financial services business, as well as the fleet leasing and mobility operations.

With effect from 1 November 2021, Ursula Wingfield takes on the role of chief financial officer for Alphabet (GB), in addition to her current role as CFO for BMW Financial Services (GB), a position she has held since August 2020. Wingfield is well acquainted with Alphabet, having previously spent five years as chief executive of Alphabet in the German market prior to her UK appointment.

21 September | Digital

Aston Barclay enhances digital platform for finance house clients

Aston Barclay has launched a fully closed group ‘white label’ timed auction platform to help finance houses repatriate used cars back into franchised dealer networks.

From January 2021, Aston Barclay launched a digitised version of the PCP returns process for finance houses that incorporates an app-based inspection tool at the returning dealership. This allows fully-costed appraisal data to be sent to Aston Barclay’s group timed auction platform. It then allows an entire franchise network exclusive access to purchasing the returned PCP stock at auction prior to being sold in the open market.

“We have enhanced our digital products to facilitate our customers’ needs and have successfully repatriated thousands of cars since to the Mazda, Vauxhall and VAG franchises in partnership with our finance house customers,” said Martin Potter, managing director – customer at Aston Barclay.

This has reduced days to sell, facilitated the damage recharge process and met contractual demands to repatriate as much stock as possible back to its network for one of Aston Barclay’s finance houses.

21 September | Leasing

Drivers ‘can save more than £5,000’ opting for PCH

Personal contract hire (PCH) is consistently cheaper than personal contract purchase (PCP), according to research conducted by Leasing.com.

The research found that leasing could save consumers more than £5,000 on premium car models and more than £1,200 on economy models.

Across the eight models that were compared, leasing was cheaper than all equivalent offers on PCP finance. For example, a leasing contract on a Fiat 500 cost £7,353.36 over 48 months while the same car on PCP cost a total of £11,245, adding up to £3,891.64 more for the consumer.

Dave Timmis, managing director of Leasing.com, said: “Our research shows that personal leasing is consistently cheaper than the equivalent PCP offer, helping new car consumers to potentially save thousands of pounds over the course of their agreement. These savings aren’t reserved for just the more affordable new car models either, with many premium leased vehicles offering savvy consumers significant savings.”

In brief

Cazoo names Abhishek Roy as European managing director

Online car retailer Cazoo has appointed Abhishek Roy as its European managing director, bringing 15 years of industry experience to the role.

Firms can avoid worst climate effects with EV adoption

LeasePlan has called on businesses to take action on climate change and switch to electric fleets in the small window left to prevent the worst possible outcomes for the planet.

Average used car price jumps 18.6% on Auto Trader

The average price of a used car increased 18.6% year-on-year to £17,754 last week on Auto Trader, driven by significant consumer demand.

Commuters ‘prefer driving to work’ over public transport

The pandemic has led to a spike in commuters opting to drive to work instead of using public transport, a survey from Close Brothers has revealed.

Consumer car finance market falls 20% in July, FLA figures show

The UK consumer car finance market saw a 20% year-on-year fall in new business volumes in July, according to the latest data from the FLA.

21 September | Digital

Aston Barclay enhances digital platform for finance house clients 

Aston Barclay has launched a fully closed group ‘white label’ timed auction platform to help finance houses repatriate used cars back into franchised dealer networks.

From January 2021, Aston Barclay launched a digitised version of the PCP returns process for finance houses that incorporates an app-based inspection tool at the returning dealership. This allows fully-costed appraisal data to be sent to Aston Barclay’s group timed auction platform. It then allows an entire franchise network exclusive access to purchasing the returned PCP stock at auction prior to being sold in the open market.

“We have enhanced our digital products to facilitate our customers’ needs and have successfully repatriated thousands of cars since to the Mazda, Vauxhall and VAG franchises in partnership with our finance house customers,” said Martin Potter, managing director – customer at Aston Barclay.

This has reduced days to sell, facilitated the damage recharge process and met contractual demands to repatriate as much stock as possible back to its network for one of Aston Barclay’s finance houses.

21 September | Leasing

Drivers ‘can save more than £5,000’ opting for PCH

Personal contract hire (PCH) is consistently cheaper than personal contract purchase (PCP), according to research conducted by Leasing.com.

The research found that leasing could save consumers more than £5,000 on premium car models and more than £1,200 on economy models.

Across the eight models that were compared, leasing was cheaper than all equivalent offers on PCP finance. For example, a leasing contract on a Fiat 500 cost £7,353.36 over 48 months while the same car on PCP cost a total of £11,245, adding up to £3,891.64 more for the consumer.

Dave Timmis, managing director of Leasing.com, said: “Our research shows that personal leasing is consistently cheaper than the equivalent PCP offer, helping new car consumers to potentially save thousands of pounds over the course of their agreement. These savings aren’t reserved for just the more affordable new car models either, with many premium leased vehicles offering savvy consumers significant savings.”

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