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UK Used Car Finance: Market Insight Report 2019

  • ID: 4802177
  • Report
  • January 2019
  • Region: United Kingdom
  • 62 Pages
  • Apex Insight

FEATURED COMPANIES

  • 1st Stop Car Finance
  • Billing Finance
  • First Response
  • Mann Island Finance
  • MotoNovo
  • Raphaels Bank
  • MORE
This report focuses on the UK market for secured consumer finance for used cars.
  • It also includes agreements for used motorcycles, vans and leisure vehicles (e.g. campervans) however cars represent over 95% of the relevant consumer market.
  • Secured loans are defined as those where the ownership of the vehicle rests with the lender during the life of the agreement.
  • The report excludes unsecured personal loans that some consumers may use when buying a car, which the publisher believes is now a relatively minor form of car finance.
  • It includes agreements for vehicles that might be used for business purposes by individuals but are purchased by consumers rather than the businesses they run.
The report:
  • Describes the overall used vehicle market size and historical growth rates.
  • Profiles 25 largest used vehicle loan providers.
  • Describes the role of brokers, including firms working with vehicle dealers and those dealing direct with consumers.
  • Reviews drivers of used vehicle loan growth, setting out historical trends and available forecasts.
  • Provides the forecast for the market to 2021, supported by evidence from market drivers and industry interviews.
Objectives of the report

This report aims to get behind the publicly available high-level numbers on the number and value of car finance agreements arranged at POS to provide insight into the size and characteristics of the diverse range of lenders within this growing market

Key questions it answers include:
  • What are the different ways in which car dealer POS finance is offered in the UK?
  • What are the main types of used vehicle finance products?
  • How does the process of providing used vehicle loans vary between prime, near-prime and sub-prime customers?
  • Who are the main finance companies and what are their channels to market?
  • What is the role of brokers in the market?
  • What alternatives are there to secured loans for used vehicles?
  • How could new regulation change the market?
  • Taking these factors into account, how do the publisher expect the market to grow in the future?
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • 1st Stop Car Finance
  • Billing Finance
  • First Response
  • Mann Island Finance
  • MotoNovo
  • Raphaels Bank
  • MORE
About this report
  • What does the report contain?
  • What are the objectives of this report?
  • Who is it useful for?
  • What are the sources and methodology?
Summary
  • The used car finance market
Market size and growth
  • Outlook
About the Publisher
  • Company background
  • Consulting services
  • Commercial/operational due diligence
  • Custom market analysis
  • Primary research
  • Growth strategy
  • Related research
List of Charts and Tables
  • Used car finance market
  • Definition of the market
  • Types of finance offered to purchase cars
  • Hire Purchase
  • Personal Contract Plan (PCP)
  • Lease
  • Alternative products
  • Non-POS car loan
  • Personal loan
  • Mortgage further advance
  • Credit Card
  • Types of customers
Market size and growth
  • UK car market
  • Dealer sales
  • Franchised dealers
  • Independent dealers
  • Other vehicle distributors
  • Motor finance penetration
  • Motor finance volumes
  • Non-prime lending
Market Drivers
  • Regulatory landscape
  • FCA authorisation
  • Regulatory requirements
  • Recent regulatory developments
  • UK Economic performance
  • Consumer borrowing
  • Ability to service borrowing
  • Wages
  • Source: Bank of England Financial Stability Report November 2017
  • Other market drivers
Competitive landscape
  • Overview
  • Success factors in dealer POS finance
  • Market size and share
  • Sub-Prime sector
  • Split by channel
Major lenders
  • Barclays Partner Finance
  • Description
  • Activities
  • Black Horse (Lloyds Banking Group)
  • Description
  • Activities
  • Close Brothers Motor Finance
  • Description
  • Activities
  • Recent developments
  • Hitachi Capital
  • Description
  • Activities
  • Recent developments
  • MotoNovo
  • Description
  • Activities
  • Recent developments
  • Santander UK plc
  • Description
  • Activities
  • Recent developments
Other lenders
  • 1stStop Car Finance
  • Description
  • Activities
  • Recent developments
  • Advantage Finance
  • Description
  • Activities
  • Recent developments
  • Alphera
  • Description
  • Activities
  • Billing Finance
  • Description
  • Activities
  • Recent developments
  • Blue Motor
  • Description
  • Activities
  • Recent developments
  • First Response
  • Description
  • Activities
  • Recent developments
  • JBR Capital
  • Description
  • Activities
  • Recent developments
  • Mallard Vehicle Finance
  • Description
  • Activities
  • Marsh
  • Description
  • Activities
  • Recent developments
  • Moneybarn
  • Description
  • Activities
  • Recent developments
  • Moneyway
  • Description
  • Activities
  • Recent developments
  • NIIB Group
  • Description
  • Activities
  • Recent developments
  • Oodle Financial Services
  • Description
  • Activities
  • Recent developments
  • Paragon
  • Description
  • Activities
  • Recent developments
  • Private & Commercial
  • Description
  • Activities
  • Recent developments
  • Raphaels Bank
  • Description
  • Activities
  • Recent developments
  • Startline
  • Description
  • Activities
  • Recent developments
  • The Car Finance Company
  • Description
  • Activities
  • Recent developments
  • Other funders
  • Admiral Loans
  • Car Finance Limited
  • Ratesetter
  • Car dealer finance brokers
  • Auto Union Finance
  • Creditas
  • DSG Financial Services
  • Eurodrive
  • Evolution Funding
  • Jigsaw Finance
  • Mann Island Finance
  • Motion Finance
  • Whichdeal Limited
Forecasts
  • Approach
  • Key driver forecasts
  • Economic growth
  • Interest rates
  • Amount of consumer debt
  • Unemployment and underemployment
  • Household disposable income and wages
  • Used car sales volume forecasts
  • New car sales volume
  • Used car sales volume
  • The publisher's forecast scenario for used car sales volumes
  • Motor finance penetration
  • Regulatory impacts
  • Other drivers of finance penetration
  • The publisher's forecast scenario for used car finance penetration levels
  • Forecast used car finance values
  • Appendix: abbreviations
List of Exhibits
Market participants
Used vehicle new secured finance agreement volumes (Thousands): Actual and forecasts
Car parc (millions)
Car sales - volume (millions)
Average period between car sales/years
Dealer car sales - volume (millions)
Consumer vehicle finance penetration level - transactions financed as % of total
Total advances - volume/‘000
Total new consumer POS advances - value/£bn
Key FCA regulatory requirements for car dealers
UK real GDP/% annual changes
UK outstanding unsecured consumer credit/£bn
Historical number of unemployed and underemployed/m
UK median earnings (current prices) and real household disposable income annual growth rates/% annual change
UK household debt to income ratio
Market participants
Breakdown of annual new lending
Volume and value of used cars finance in 2017 (millions and £ billions)
Clydesdale Financial Services Ltd. used vehicle secured finance net investment - £m
Lloyds Banking Group UK used vehicle secured finance net investment - £m
Close Brothers used vehicle finance net investment - £m
Hitachi Capital used vehicle net investment £m
MotoNovo UK used vehicle net investment £m
Santander Consumer Finance UK used vehicle net investment £m
1st Stop Car Finance Limited Financials
Advantage Finance Limited Summary Financials
Billing Finance Limited Financials
Blue Auto Holdings Limited Financials
First Response Finance Limited Summary Financials
JBR Capital Limited Financial Summary
Mallard Leasing Ltd. Summary financials
Marsh Finance Ltd. Summary Financials
Moneybarn No. 1 Ltd. Summary Financials
Moneyway (Secure Trust Bank) Summary Financials
Oodle Financial Services Limited Summary Financials
Paragon Banking Group PLC Summary financials
PCF Bank Ltd. consumer finance division summary Financials
Startline Auto Receivables Ltd. and Startline Motor Finance Summary Financials
The Car Finance Company (2007) Limited Summary Financials
UK real GDP/annual changes
UK historical & forecast unsecured household debt/£bn
Unemployment and underemployment/m
Number of people in employment/m
UK median earnings (current prices) and real household disposable income annual growth rates/% annual change
Historical and forecast car sales - volume/£m
Historical and forecast used vehicle finance - volume ‘000
Historical and forecast used vehicle finance - £ billion
Note: Product cover images may vary from those shown
  • Barclays Partner Finance
  • Black Horse (Lloyds Banking Group)
  • Close Brothers Motor Finance
  • Hitachi Capital
  • MotoNovo
  • Santander UK plc
  • 1st Stop Car Finance
  • Advantage Finance
  • Alphera
  • Billing Finance
  • Blue Motor
  • First Response
  • JBR Capital
  • Mallard Vehicle Finance
  • Marsh
  • Moneybarn
  • Moneyway
  • NIIB Group
  • Oodle Financial Services
  • Paragon
  • Private & Commercial
  • Raphaels Bank
  • Startline
  • The Car Finance Company
  • Ratesetter
  • Car dealer finance brokers
  • Auto Union Finance
  • Creditas
  • DSG Financial Services
  • European Vehicle Contracts (Eurodrive)
  • Evolution Funding
  • Jigsaw Finance
  • Mann Island Finance
  • Motion Finance
  • Whichdeal Limited
Note: Product cover images may vary from those shown
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