Rallying the industry: open dealers bring growth in new car registrations in UK and Europe

New car registration figures released by the Society of Motor Manufacturers and Traders (SMMT) for May in the UK have shown an 89% fall from the same period in 2019. This is only slightly less negative than April’s record 97% collapse compared to the year before. As ‘click and collect’ services were permitted by the government around the middle of May, some movement was observed, with 20,247 cars registered. Albeit with 163,477 fewer registrations than May 2019, the performance hit the lowest May figures since 1952, which saw 14,466 registrations.

Rallying the industry: open dealers bring growth in new car registrations in UK and Europe

Jun 05, 2020

New car registration figures released by the Society of Motor Manufacturers and Traders (SMMT) for May in the UK have shown an 89% fall from the same period in 2019. This is only slightly less negative than April’s record 97% collapse compared to the year before. As ‘click and collect’ services were permitted by the government around the middle of May, some movement was observed, with 20,247 cars registered. Albeit with 163,477 fewer registrations than May 2019, the performance hit the lowest May figures since 1952, which saw 14,466 registrations.

European clean car market set for €20 billion boost from Commission

Piecing together a €20 billion purchase incentive scheme for cleaner cars over the next two years, the European Commission has released this news as part of a paper listing the initial proposals for a €100 billion economic and climate protection package for the transport industry. According to the document, such premiums are hoped to help “reduce CO2 and pollutants in accordance with European standards.” Although the details of the financing remain somewhat blurred, it is thought that the funds would come from two existing EU programs rather than from the reconstruction packages currently being discussed.

European clean car market set for €20 billion boost from Commission

Jun 02, 2020

Piecing together a €20 billion purchase incentive scheme for cleaner cars over the next two years, the European Commission has released this news as part of a paper listing the initial proposals for a €100 billion economic and climate protection package for the transport industry. According to the document, such premiums are hoped to help “reduce CO2 and pollutants in accordance with European standards.” Although the details of the financing remain somewhat blurred, it is thought that the funds would come from two existing EU programs rather than from the reconstruction packages currently being discussed.

Impact of FCA guidance on UK auto financing may cause PCP residual value challenges

Before the pandemic, vehicle finance lending in the UK had risen year-on-year from £24 billion in 2012 to £48 billion in 2019. This was mirrored by a steep rise in the number of PCP loans taken out, representing 75.2% of all new car finance loans in 2019. Under PCP agreements, the borrower pays a fraction of the vehicle’s purchase price as a deposit and then a series of monthly instalments during the life of the agreement. Throughout the contract, the finance company retains ownership of the vehicle, and at the end of the contract the borrower can either take ownership of the vehicle by making a final balloon payment for the residual value, or return the vehicle to the lender.

Impact of FCA guidance on UK auto financing may cause PCP residual value challenges

Jun 01, 2020

Before the pandemic, vehicle finance lending in the UK had risen year-on-year from £24 billion in 2012 to £48 billion in 2019. This was mirrored by a steep rise in the number of PCP loans taken out, representing 75.2% of all new car finance loans in 2019. Under PCP agreements, the borrower pays a fraction of the vehicle’s purchase price as a deposit and then a series of monthly instalments during the life of the agreement. Throughout the contract, the finance company retains ownership of the vehicle, and at the end of the contract the borrower can either take ownership of the vehicle by making a final balloon payment for the residual value, or return the vehicle to the lender.

EMEA

Rallying the industry: Return of the dealerships approved to boost economy and fuel the bounce back

May 27, 2020

In his daily briefing on 25 May, UK Prime Minister Boris Johnson announced that motor dealerships in England would be able to reopen on 1 June, provided they met the guidelines to protect shoppers and workers, under the new stage of the government’s recovery plan. Ordered to close doors to the public back in March to slow the spread of the virus, dealerships have been eagerly awaiting the return to operations properly - until now being limited to ‘click-&-collect’ sales only - to help boost the economy and fuel the bounce back.

Americas

Maven car-sharing service falls victim to COVID-19 in latest blow to shared mobility

Apr 22, 2020

Maven, the car-sharing service from General Motors, has announced it is to wind down operations. The announcement comes a month after the business suspended operations in response to the COVID-19 crisis, which accelerated the decision to close the business. A spokesman said: “We took the suspension period to critically look at our business and the challenges that exist in the industry and have decided now is the right time to transition our resources, capabilities, and technology to other GM businesses where there is greater potential for profit and growth.”

Asia Pacific

Toyota Finance New Zealand partners with Ephesoft on digital transformation initiative

Jan 28, 2020

Toyota Financial Services New Zealand (TFNZ) has partnered with Ephesoft to drive its automotive loan application and settlement processing. TFNZ will use Ephesoft’s Transact software within its loan operations team to automate the classification and processing of key forms and documents. The Transact platform uses artificial intelligence, machine learning and cloud-based services to automate document processing and will integrate with the finance company’s existing loan origination system.