www.motorfinanceonline.com Issue 177 / august 2019 REMOTE CONTROL HOW TELEMATICS IS SET TO SHAPE THE WAY WE BUY, DRIVE AND MAINTAIN CARS FEATURE ANALYSIS COMMENT Car manufacturers are As dealers sell more online, Surprising statistics about doubling down as consumer the race is on for full millennials’ attitudes, and appetite for EVs grows omnichannel adoption what they mean for dealers MF August 177.indd 1 01/08/2019 10:46:26 contents this month COVER STORY NEWS 14 05 / EDITOR’S LETTER 06 / DIGEST • Barclays Partner Finance withdraws from motor finance • Car dealer group Lookers under FCA investigation • Blue to collaborate with Lloyds for instant payments • Northridge signs white-label deal with SsangYong • SMMT: new car registrations drop for fourth consecutive month • Pendragon CEO to depart role • FCA launches review of credit information market • TDR Capital, BCA Marketplace agree £1.9bn acquisition • Getaround acquires Nordic firm for $12m • FCA launches consultation on customer treatment TELEMATICS • Pre-registrations return a ‘sign of difficulties’ Editor: News Desk: Publishing Assistant: Brian Cantwell +44 (0)20 7406 6538 Asena Değirmenci 24 / DATABANK +44 (0)20 7406 6705 +44 (0)20 3096 2633 Group Editorial Director: [email protected] [email protected] Ana Gyorkos Senior Reporter: +44 (0)20 7406 6707 Director of Events: Chris Lemmon [email protected] Ray Giddings +44 (0)20 7406 3723 +44 (0)20 3096 2585 Sub-editor: [email protected] [email protected] Nick Midgley Reporter: +44 (0)161 359 5829 Head of Subscriptions: Christopher Marchant [email protected] Alex Aubrey +44 (0)20 7406 6709 +44 (0)20 3096 2603 Sub-editor: [email protected] [email protected] Sophia Bell 07 Customer Services: +44 (0)20 3096 2603 or +44 (0)20 3096 2636, [email protected] Financial News Publishing, 2012. 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London Office: John Carpenter House, John Carpenter Street, London EC4Y 0AN Image resources: shutterstock.com, Headline Auto follow mf on twitter @motorfinance 2 | August 2019 | Motor Finance MF August 177.indd 2 01/08/2019 10:46:29 contents august 2019 OPINION 22 / HUNTSWOOD 17 Last month, the Motor Ombudsman launched its #talk2resolve campaign, to highlight the importance of consumers speaking to motor businesses directly to resolve a complaint. Sean Kulan writes 22 FEATURES ANALYSIS COMMENT 12 / LINEDATA 20 / AUTOMOTIVE DEALERS 23 / EQUINITI Christopher Marchant was at Linedata’s With dealers increasingly selling cars Sarah Jackson, director at Equiniti Credit London event at the Sea Containers hotel and finance online, the race is on for full Services, reveals some surprising statistics complex on the River Thames, featuring talks omnichannel adoption to suit consumers, about millennials’ attitudes to credit, and from professionals in the asset management, according to Grant Thornton and Cox explores what it all means for lenders looking leasing and insurance industries Automotive. Chris Lemmon writes to target this demographic 14 / TELEMATICS 21 / BBC MONEY BOX Telematics tools and technology are rapidly Motor finance has received more mainstream becoming ubiquitous, with an accompanying media attention, with BBC Radio 4’s Money boom in car-generated data, but what are the Box programme covering concerns from the actual benefits for the motor finance industry Financial Ombudsman Service regarding and its consumers? Chris Farnell reports complaints. Chris Lemmon reports 17 / EV UPTAKE The electrification movement is beginning to 14 gain traction worldwide. Car manufacturers are doubling down on electric investment as consumer appetite for zero-emission vehicles continues to grow. Chris Lemmon writes 20 23 www.motorfinanceonline.com | 3 MF August 177.indd 3 01/08/2019 10:46:32 HEAR • NETWORK • DISCOVER • CELEBRATE Leasing Life Conference & Awards 2019 Barcelona, Spain • 28 November 2019 For its 15th edition, the Leasing Life Conference and Awards 2019 moves to Barcelona, to bring together asset finance professionals and industry disruptors in an active discussion of the key issues facing the leasing industry. This year’s Leasing Life Conference explores how Europe’s leasing industry is responding to the value chain opportunity, the role of technology in this pinnacle transformation, strategy-driven innovation and much more. Thriving in a digital age has never been more important. Event highlights • Embracing technological transformation: creating digitised business models • From new technologies to corporate cultures: making innovation a reality • The circular economy: driving change at full speed • CEOs panel discussion and Q&A: the future of asset finance – a strategic outlook • Remaining relevant in an increasingly competitive world • Panel discussion: capitalising on data to drive industry-wide innovation Headline Partner Gold Partner Silver Partners Bronze Partners Exhibitors Panel Partner Cocktail Partner Table Host Badge and Lanyard Partner For more details please contact Ray Giddings on [email protected] or call +44 (0)20 3096 2585 MF August 177.indd 4 01/08/2019 10:46:33 editor’s letter HEAR • NETWORK • DISCOVER • CELEBRATE Editor’s letter Leasing Life Conference & Awards 2019 Barcelona, Spain • 28 November 2019 challenges from For its 15th edition, the Leasing Life Conference and Awards 2019 moves to Barcelona, to bring different quarters together asset finance professionals and industry disruptors in an active discussion of the key Brian Cantwell, Editor issues facing the leasing industry. This year’s Leasing Life Conference explores how Europe’s leasing industry is responding to the value chain opportunity, the role of technology in this pinnacle transformation, strategy-driven innovation and much more. Thriving in a digital age has never been more important. his month, Barclays Partner Finance customers, and the additional cost that bringing new Event highlights announced it was leaving the motor finance legislation into action can incur. • Embracing technological transformation: T market, following a strategic review. With regard to the vulnerable customers legislation, creating digitised business models While the public statement said the decision was there is a wide spectrum of possible outcomes. The FCA • From new technologies to corporate commercial and a move away from consumer motor lending said it wants vulnerable customer care to be embedded cultures: making innovation a reality within the bank, competition for funders has been growing within each firm’s culture. Businesses that fall under FCA • The circular economy: driving change at in the motor finance space for many years. Add to this the authority will need to understand what the guidance full speed faltering growth in the new car market, and the increasing means for their business and customers, and how they are • CEOs panel discussion and Q&A: the future chance of legislation following the FCA review, which could addressing the needs of vulnerable customers. of asset finance – a strategic outlook only have helped the decision-making process. While there has been significant progress in the Barclays follows Raphaels Finance, which left the car treatment of customers in recent years, the regulatory body • Remaining relevant in an increasingly finance market in May 2018. More recently, Secure Trust points out that there remain cases where firms are clearly competitive world Bank said it was moving out of the subprime finance market failing to consider the needs of vulnerable customers, • Panel discussion: capitalising on data to and into the more-prime space. which can result in harm. drive industry-wide innovation It may be that there are more market exits in the future, However, it is very difficult to define where the as developments challenge the car finance market. These boundaries of vulnerability lie – take for example our challenges come from different quarters: both market reporting on the BBC Money Box coverage of motor conditions and regulatory. finance. It used an example of a young person receiving On the one hand, the challenge from the uncertainty motor finance that they later realised they could not afford. of Brexit has had manufacturers concerned about their To what extent do the rules on affordability intersect with supply-chain costs, and additionally about the potential vulnerability? What other aspects, apart from age, factor tariffs that may be added to cars sold in the UK. Interest into vulnerability? rates remain at historic lows, and any movement in them These are questions that should be clarified by the will also add to the cost of car finance for consumers. regulator. If not, they can, unfortunately, result in Headline Partner Gold Partner Silver Partners Bronze Partners The FCA has several lines of consultation open on cases making their way to the Financial Ombudsman – different regulatory angles, most recently on vulnerable sometimes