VRL: Senior Motor Finance Figures Say Now Is Good Time To Change Funder-Dealer Relationship

LONDON--Thirteen of the UK’s most important motor finance leaders met on 8^th September 2009 at a high-profile roundtable to deliberate a number of issues currently facing the industry. Participants travelled to London to talk about the almost unprecedented market position that providers of motor finance to retail customers have found themselves in. The event was hosted by Motor Finance magazine and was sponsored by Black Horse, Target Group and Grant Thornton.

The agenda saw discussions centre on how motor finance providers have had to adapt to the current dramatic and turbulent economic landscape. With the virtual disappearance of direct lending rivals, a damaging fall in car sales, liquidity problems on an unprecedented scale and growing unemployment leading to rising arrears, the environment within which motor finance providers operate is unstable. Factor in the introduction of the government’s scrappage scheme and many opinions were expressed as to what lies ahead.

It was unanimously agreed that the industry is at a crossroads and that there is now a real opportunity to change the funder-dealer relationship. Further debates followed regarding whether a move from transaction-based relationships to longer-term partnerships is the priority and what that will mean for commission structures. It will be interesting to see whether some of the ideas which emerged from the conversation are developed further.

Roundtable participants:

Chris Sutton - Managing Director - Black Horse
Tarun Mistry - Director: Head of Leasing & Consumer Finance - Grant Thornton UK LLP
Jim Rowley - Associate Director: Head of Consumer Finance - Grant Thornton UK LLP
James Snow - CEO - Target Loan Servicing
Graham Llewellyn-Berry - Senior Business Consultant - Target Group
Jo Tacon – Editor - Motor Finance magazine
Steve Gowler - Managing Director - RCI Banque
Mark Standish - Managing Director - Carlyle Finance
John Sinclair - CEO - British Credit Trust
David Betteley - Managing Director - Toyota Financial Services
Doug Moody - Sales & Marketing Director - Mercedes-Benz Financial Services
Bruce Wood – Chairman – Morton Fraser
Peter de Rousset-Hall - Director - Woburn Consulting
Brian Rogerson - Director - Brian Rogerson Media

A full writeup of the discussion can be found in a supplement within the September’s Motor Finance magazine. Please go to www.motorfinanceonline.com for more information.