Unfair commission claims increasing pressure on motor finance providers

9th February 2024 Consumer Lending | #motor finance

As the Money Saving Expert encourages consumers to claim for potentially unfair motor vehicle credit arrangements, RSM UK is warning that credit providers could face increased operational pressures. In January, the Financial Conduct Authority (FCA) announced it was undertaking a review of historic car finance arrangements, and would take regulatory action if widespread misconduct means…

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Car finance fell by 7% in November

17th January 2024 Consumer Lending | #motor finance

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in November 2023 by 7% compared with the same month in 2022. The corresponding value of new business was 5% lower over the same period.  In the eleven months to November 2023, new business volumes were…

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FCA to review possible motor finance misconduct

11th January 2024 Consumer Lending | #motor finance

The Financial Conduct Authority has announced that it begin a a study of the motor finance industry, amid rising tensions between consumers and lenders on discretionary commission arrangements. In 2021, the FCA banned discretionary commission arrangements. This removed the incentive for brokers to increase the interest rate that a customer pays for their motor finance. The FCA…

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More people are currently saving for a car than a house deposit

19th December 2023 Consumer Lending | #motor finance

A study by Ford Credit has found that more people are now prioritising saving for a car (24%), than for a house (18%) or home renovations (19%). The research found that one in five still believe they will be able to get a foot on the housing ladder, whilst over a third (38%) have given…

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Motor sector responsible for a quarter of all financial complaints

15th December 2023 Consumer Lending | #motor finance

New complaints data from the  Financial Ombudsman Service (FOS) has shown that complaints relating to motor issues now make up 25% of all cases for the second quarter (Q2) of this financial year, July to September 2023/24. These increasing complaint levels have arisen in two separate sectors. From 1st July to 30th September 2023, on…

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Consumer car finance falls by 3%

8th December 2023 Consumer Lending | #motor finance

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in October 2023 compared with the same month in 2022. The corresponding value of new business was 2% lower over the same period.  In the ten months to October 2023, new business volumes remained…

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Finance set to drive record £23bn in used car sales

Motorists are set to spend a record 1.5 million used cars on finance this year borrowing £23 billion on car finance new research by AA Car Finance has revealed. Consumers bought 388,309 second-hand cars on finance in the first three months of 2023, up from 379,512 the previous year. If current trends continue, consumers will…

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One in five motorists no longer ‘brimming’ their tank

8th August 2023 Consumer Lending | #motor finance

Almost one in five motorists (18%) are no longer “brimming” their tank when they fill up with petrol or diesel thanks to rising mortgage and rent costs according to research by Startline. The impact of high housing expenditure on personal finances also means 12% have stopped using their car altogether while 10% want to swap…

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Debt charity sees increase in car finance debt advice

Between January 2020 and March 2023, the proportion of clients accessing debt advice who have a car finance debt has risen by 14.8%. In the same period, the average balance of a client’s car finance debt has increased by more than 20%, from £8,077 to £9,705. The charity’s research also found that clients with car finance debt tend to…

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Over 50s have spent £4.4bn on cars for their children

Over 50s in the UK have spent more than £4.4 billion on cars for their kids and grandkids over the past five years, according to the latest research from over 50s experts SunLife. SunLife’s new Life Well Spent report has revealed that 25% of over 50s – rising to 29% of retired over 50s – have given significant…

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Consumer car finance new business fell by 8% in March

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in March 2023 by 8% compared with the same month in 2022. The corresponding value of new business fell by 7% over the same period.  In Q1 2023, new business fell 6% by value and 5%…

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Third of drivers less likely to commit long-term car finance

16th February 2023 Consumer Lending | #motor finance

A third of drivers (32%) say that they are far less likely to replace their existing car by committing to a long-term (three-year) lease than they were 12 months ago, an independent study has research by Mmobility provider Sogo has found. The findings also indicate that only 14% of drivers would be much more likely to…

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Consumer car finance new business volumes grew by 4% in October

16th December 2022 Consumer Lending | #motor finance

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in October 2022 by 4% compared with the same month in 2021. The corresponding value of new business increased by 9% over the same period. In the ten months to October 2022, new business volumes…

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