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UK Used Car Finance: Market Insight Report 2021

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    Report

  • 63 Pages
  • December 2020
  • Region: United Kingdom
  • Apex Insight
  • ID: 5233846
The report focuses on the UK market for secured consumer finance for used/second-hand 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 our forecast for the market to 2021, supported by evidence from market drivers and industry interviews.

Table of Contents

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
  • 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
  • 1st Stop 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
  • Our forecast scenario for used car sales volumes
  • Motor finance penetration
  • Regulatory impacts
  • Other drivers of finance penetration
  • Our forecast scenario for used car finance penetration levels
  • Forecast used car finance values
  • Appendix: abbreviations 58
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