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Semiconductor shortage yet to bite

By |2022-05-18T10:29:42+01:00May 18th, 2022|Categories: Leasing & Finance News, Sector Analysis|

Surprising that as many as three out of four fleets report that there has been no impact on their operations. This is, in our view, quite a high figure. The most likely explanation is that it is largely accounted for by either fleets planning further ahead in their vehicle replacement process, or by the contract extensions that were widely undertaken by many businesses during the pandemic when mileage fell dramatically These particular fleets have been unaffected by delayed orders either because they have not been trying to replace vehicles, or have not yet really felt the full impact of the extended lead times.

Daily rental companies turning away fleet business for retail

By |2022-05-16T11:07:16+01:00May 16th, 2022|Categories: Leasing & Finance News, Sector Analysis|

Rental shortages are currently a regular topic of conversation among AFP members, with widespread discussions about the difficulties being faced. It’s a situation that is showing few signs of improvement and may even get worse before it improves. Rental companies – like everyone else – simply can’t access new vehicle supply in the quantities they need.

Smart, flexible contract management is answer to EV multi-cycle leasing

By |2022-05-09T10:56:04+01:00May 9th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , , , |

Leasing companies are also looking to retain control over vehicles for longer leasing cycles. The ‘Move 2025’ strategic plan at ALD Automotive, another Sofico client, comprises a business model in which vehicles are leased, in some cases, for their entire lifespan, involving multi-cycle leasing, used car sales and multi-channel distribution.

SMMT revises new car sales forecast downwards

By |2022-05-09T10:12:22+01:00May 9th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , , , , |

Supply chain issues are causing OEMs to feel the pinch more than ever as they struggle to fulfil increasing orders, on top of a backlog of deliveries. With a protracted shortage of vehicles, it is prudent for drivers and fleet operators to be planning further ahead, increasing their renewal cycle from 6 to 9 months in advance. For leasing companies, there is an onus on providing flexible extension agreements to help alleviate the current situation.

What are the hidden costs of an EV fleet?

By |2022-04-27T10:46:37+01:00April 27th, 2022|Categories: Leasing & Finance News, Sector Analysis|

Is the transition to EV for many fleets is being done far too early, and will it have significant cost and operational implications? Total Motion's view on the charging network is that this so far behind demand that it foresees large queues and increased roadside failures from running out of charge.

Cox Automotive downgrades 2022 new car forecast

By |2022-04-20T11:34:18+01:00April 20th, 2022|Categories: Leasing & Finance News, Sector Analysis|

It is looking increasingly likely that the pre-pandemic automotive market we all knew may never return as the sector continues to be hit by headwinds. Whether it is a growing number of manufacturers switching to the agency model or ongoing supply chain disruption, the UK’s automotive sector looks set for short to medium-term volatility and may well emerge from this looking completely different to pre-pandemic levels. 

FCA takes a new look at AR rules

By |2022-04-08T12:04:16+01:00April 8th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , , |

There can be no doubt that the proposals will require significantly more time, effort and cost for dealers. It will also mean that principals, as the regulator recognises, will require sufficient resources to maintain the "adequate" controls required. Indeed the FCA references the need for principals to have the necessary people, processes, technology, facilities and information and, by implication, financial backing to oversee the AR's activities and potential liabilities. 

carwow reports huge increase in consumer demand for lease agreements

By |2022-04-08T12:07:18+01:00April 7th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , |

The rise in lease enquiries is part of a longer-term trend. carwow’s leasing enquiries are up by 182% since the start of 2018, driving an increase in revenue for carwow’s lease division of more than 500% over the same period. As a proportion of all of carwow’s new car leads, lease enquiries grew by 325% between 2018 and 2021.  

MotoNovo Finance hits new lending record in March

By |2022-04-07T08:51:50+01:00April 7th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , |

The sustained momentum saw a record March performance for the business’ car, LCV, motorcycles, corporate and broker channels. The result was a record month that the business’ Managing Director Karl Werner sees as encouraging for the broader motor retail community.

March new car sales hit lowest level since 1998

By |2022-04-05T10:30:43+01:00April 5th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , |

Economic headwinds such as rising energy costs, fuel costs, inflation and a squeeze on household incomes could impact new vehicle demand. With grants for BEVs ongoing until at least next March, however, interest rates still low and electric cars benefiting from lower running costs, there are significant benefits for drivers who can order new vehicles now.

Leasing an EV is almost 20% cheaper than PCP – Leasing.com

By |2022-03-29T10:51:48+01:00March 29th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , , |

According to 2022 pricing data across Leasing.com’s top 15 most popular BEVs, leasing was the cheapest and most cost-effective option on 87% (13) of those models. Across the list, the highest cost difference was 31%, with the average difference in cost being 18%. The highest saving came in at £9,108 for Audi’s all electric e-Tron, with the average saving across the board netting out at £2,313.58.

Car registrations up but remain below pre-pandemic levels

By |2022-03-04T15:14:38+00:00March 4th, 2022|Categories: Leasing & Finance News, Sector Analysis|Tags: , , , , |

Supply chain impacts and the chip shortage will continue in the short term to frustrate the industry. with many auto manufacturers attributing falling production numbers (UK car production fell 20% in January this year) and high levels of unfulfilled customer orders to the shortage in semi-conductors.

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