November 26, 2014

First Two Quarters Show Continued Improvement in the Car Finance Market

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By Shaun Armstrong – Managing Director of Creditplus.co.uk A combination of consumer confidence and more liquidity from key car finance companies has seen Creditplus.co.uk show a 19% increase in finance deals written in the first half of this year. The majority of the up turn is due to the willingness of key lenders such as Barclays Partner … [Read more...]

Happy days are here again – or are they?

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Last week seemed to be bursting with good news for the UK, rugby and tennis wins, house prices on the up and reports of economic upturns and corners turned. Add to this the fact that summer has apparently decided to make a long overdue appearance then the overall effect is a resounding “feel good” one. However (you knew that was coming didn’t … [Read more...]

UK new car market being “force fed” by the manufacturers

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As the numbers keep telling us the new car market in the UK is seemingly in robust health and on the up and up, but is the story underneath as rosy as the headlines suggest? Whilst I would be the last one to do-down any worthwhile signs of economic recovery it is worth pointing out that the overriding reason that the UK new car market is showing … [Read more...]

Buoyant new car market presents challenges for dealers

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Trade buyers are now actively seeking older, higher mileage, small, economical cars to stock their forecourts, as buyers continue to look for bargains. There are now 2 district variety of customers, those who 'rent' their cars like our American cousins through PCP’s or other leases and those who pay cash. You may say that is how it’s always been … [Read more...]

PCP’s more popular than ever for credit hungry Brits

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Funding cars by PCP (Personal contract purchase) is rapidly becoming the norm, it is reckoned that as many as 60% of car buyers use a PCP to buy their next car and this figure is only going in one direction. Although many of us do not necessarily like the thought of another monthly commitment it is invariably better than to have an older car … [Read more...]

Swings and roundabouts

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The strength in new car sales reflected in May’s figures from the SMMT show that although there may very well be doom and despondency around the used car activity there are still - despite the gloomy forecasts at the start of the year - shots of good news in the car business. Of course as we approach the end of q2 traditionally the 3rd quarter … [Read more...]

There’s no money in the metal

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The continued push for dealers to sell more finance and insurance is ultimately replacing profitability from falling chassis margins. One dealer told us that he now makes more from finance per unit than he does from selling the car, an amazing course of events considering just how large the investment can be in buying cars. Being somewhat from … [Read more...]

Beware of all the add-on’s

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Selling add-on products such as finance, service plans and other insurance backed products has become almost as profitable as selling the cars themselves. This trend has been steadily growing for years now and. with an unprecedented selection of ‘extras’ on offer, customers are likely to be distracted and possibly unhinged by them. Car buyers … [Read more...]

Make your car financing choices easier

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When it comes to financing a car, you need to think about a few factors. You cannot just go out and pick your favourite car – you need to think about the cost of the car and then extra costs on top of that. You also need to think about the cost of your financing option. Getting Car Finance can be a stressful time, but here are a few tips to make it … [Read more...]

What credit crunch? Car finance market share hits new high

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Motor finance achieved its highest recorded share of the private new car sales market for four years in August. In the last 12 months, 57.9 per cent of people buying new cars used forecourt finance, according to the latest figures from the Finance & Leasing Association, the trade body for the motor finance industry. The number of new cars … [Read more...]

A lot of nervous car dealers about as September approaches

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As we approach the “best month of the year” - the exciting change of registration month - I can’t help feeling that the 61 plates on the 1st will not be as plentiful as usual or perhaps as dealers would have hoped. There will inevitably be some marketing drives around, inspiring buyers to buy their brand spankers but to say that dealers are … [Read more...]

September just isn’t happening

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September just isn’t happening! Well that’s according to many car dealers across the land who are saying that their September new car order bank is half of what it should be. There will almost certainly be a drive by many car makers to introduce large volume into the market by pre-registering cars which is unfortunately one of the things that … [Read more...]

Buying a new car can make sound economic sense

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To attract more customers during the tough times dealers need to demonstrate not only that they can supply cars that best suit the needs of their buyers but also of how those buyers can afford to fund that purchase. Many potential car buyers are delaying the purchase of their next car and plodding on with their existing one, even though it may … [Read more...]

Computer still saying “no”

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Despite the recent news that, according to the latest figures released by Finance & Leasing Association, the number of new cars sold on finance rose 3% in May compared to May last year, we are being told on a daily basis that finance declines are also on the up. We have heard of decline rates running at 20% and at a time when every deal counts it … [Read more...]

MInd the GAP

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As we have often said here on MTI the world of car sales has changed dramatically in recent years. Only the other day I was talking to an old colleague who is now in consultancy (where many ex-sales pros end up) and he was ruefully admitting that, apart from the car and a bit of warranty and hire purchase, there used to be no other way of earning … [Read more...]

Margins are tight but a car dealer still has to make money

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MarginCar dealers are constantly trying to establish alternative income streams, and during the last few years the industry has adapted well to the changing face of the market and the increased competition. It is widely accepted that there is not really a bad car made today, although that is still open to debate of course, but even the new kids on … [Read more...]

Are Tesco Cars here to stay?

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There are strong rumours around that only into its second month of trading the Tesco car venture maybe having some “issues”. Of course they wouldn’t be the first car dealer to find the going a little tough. But trying to get an ambitious new venture off the ground in perhaps the hardest trading conditions in the last 3 years is hard for anyone … [Read more...]

Car clocking still on the rise

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Car clocking seems to be on the rise again and not just from spurious car dealers. With the rise and rise of PCP’s and the fact that p[payments and GFV’s (guaranteed future values) are linked, to a certain extent, to the mileage the buyer sates they will do, the penalties for exceeding that total mileage can be a massive problem for some … [Read more...]

Car choice and price in April may not be bettered this year

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The many and various bank holidays and Easter school break in the month of April mean that with only 18 days trading and many people taking a holiday it is likely to be a difficult month for car dealers. A difficult period in a market that many believe is getting harder. The influx of part-exchanges from late March are still finding their way on … [Read more...]

77% of UK motorists may not have adequate insurance

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The last few years haven’t been a great time financially for many motorists. The seemingly never ending rise in the cost of petrol, road tax increases and the extortionate cost of servicing and repairs have hit us all hard. As if all this wasn’t enough, a new survey has revealed that despite the fact that car insurance premiums are also expected to … [Read more...]

Don’t ask for credit as a refusal often offends

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It is interesting to note that cars being bought on finance have seen year on year rises in January of 6% on new cars and 20% on used. On the face of it this statistic looks encouraging, and in many ways it is, but many dealers will be scratching their heads on discovering these stats because many are having increasing numbers of customers being … [Read more...]

Dealer finance on new cars up 6% in January

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Against market expectations, 6% more new cars and 20% more used cars were sold on finance in January than the year before, according to new statistics from the Finance & Leasing Association, the trade body for the motor finance industry. Many dealers were offering low and zero percent finance deals on cars in January, helping people to buy new … [Read more...]

It’s the add-on’s that swing the deal

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The modern car salesperson has much more profit making weaponry in his arsenal than just selling a car. The list of add-on’s for car buyers continues to grow and in many cases will be the deciding factor on whether a deal is done or not. In the past a car was marked up or published in a price list and apart from the funding options it was all … [Read more...]

Car dealer finance has come a long way

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Should you wish to borrow money to buy a car, and of course you’re lucky enough to qualify for finance, there are certainly some pretty good deals about. We are slightly biased of course because we have usually found that as well as having more flexible options to offer for customers looking to fund the car purchase car dealers certainly have much … [Read more...]

New car buyers have never had it so good

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You have often heard on our blog that for the last 10 years there has not been a bad car produced, the choices are all based on price and aesthetics. Well those facts are starting to be born out as cars, which traditionally would encourage buyers to change at 80-100k, are now clicking past the 200k range and still going strong. One of the few … [Read more...]