Finance Hub

The FCA’s announcement in October on Motor Finance Discretionary Commission Models points to “fundamental changes” in the commission model, with a dealer’s capacity to set customer interest rates to be banned. That’s the view of Mark Standish, CEO of MotoNovo Finance, who said the FCA move  presented “a unique opportunity” for the dealer sales and financing model to reinvent itself, making ...

A quarter of UK retailers are not capitalising on the rise in consumers spending on finance. A study by Duologi found that consumer finance is on the rise, with 16% of consumers now purchasing on finance, rather than credit cards and bank loans, compared to just 6% in 2017. Also, 83% of consumers said they would consider using point-of-sale (POS) ...

Oodle Car Finance has announced the appointment of Andrew Lawson as chief product officer. Lawson joins from Zopa, the world’s first peer to peer lender and one of the latest digital banks,  where he held the position of chief product officer for the past five years, responsible for business growth across lending and investing, including the origination and performance of ...

Technology is becoming increasingly important in motor finance as the customer journey goes online. A report from Cox Automotive recently revealed that 60% of dealers will have online purchasing services up and running in the next two years, making the ability to secure finance easily online a must. Chris Jones, COO of Blue Motor Finance, said that online platforms supporting ...

The Financial Conduct Authority (FCA) has announced that it will ban car retailers’ discretionary finance commission model. The current system allows the broker to set the rate, and the FCA found that the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests. It estimates the changes would save customers £165m a year. ...

New business volumes in the point of sale (POS) consumer new car finance market fell by 2% in August, compared with the same month in 2018. The value of new business grew by 2% over the same period. New figures released today by the Finance & Leasing Association (FLA) show that the percentage of private new car sales financed by ...

Motor finance is under scrutiny as never before. In March, the Financial Conduct Authority (FCA) said it planned to investigate Lookers’ sales processes between the period 1 January 2016 to 13 June 2019. The announcement attracted a huge amount of attention from motor dealers who want to see what the FCA will discover in its investigation and what financial penalties ...

Dealer motor finance in July increased 1% by volume and 4% by value, compared with the same month in 2018, according to new figures from the Finance & Leasing Association. The percentage of private new car sales financed by FLA members at the point of sale was 91.2% in the twelve months to July. The POS consumer used car finance ...

Inchcape Retail has seen 20 of its business managers successfully assessed against the IMI Accreditation for Finance and Insurance standards.  Working with Alphera Financial Services, which performed candidate assessments, the managers demonstrated their capability against industry-agreed standards, building on earlier successful assessments.   The accreditation is achieved through demonstrating in-depth knowledge and following legislative regulations. The assessments are completed over the course ...