Company announces recruitment drive although vast majority of Startline’s team will continue to be home based. CEO sees no immediate reason to enforce a return to pre-crisis working conditions as the business continues to function well based around home working and could operate this way in perpetuity.
Two speed used car market is likely to persist for at least the remainder of 2020 as the economic effects of the coronavirus crisis continue to take effect, Startline Motor Finance predicted.
Many or even most of the people who are now senior managers in motor finance companies were already working in the sector during the 2008 crash and there is a temptation to look at the current situation in similar terms.
Credit scores seen over the past few weeks are higher than in Q1 of 2020, as are deposits, overall vehicle values and a range of other key metrics used by motor finance companies to assess applicants.
The Covid-19 pandemic will change the way we do business and could provide an opportunity to further advance the way in which the motor finance sector handles customer relationships.
Startline Motor Finance said questions remain around the funding of EVs on the used market, and Chief Executive Paul Burgess added that the announcement created a new degree of impetus towards resolving them.
Research for Startline Motor Finance shows that 54.6% of car dealers say they expect prime lenders to reject an increasing number of applications next year in a continuation of a trend they have seen during the last 12 months.
When asked to compare motor finance to other retail sectors in a traditional store-based setting, 39.6% of consumers placed motor finance a long way ahead or slightly ahead of other retail sectors compared to 26.3% of dealers.
There are widespread reports across the sector of prime lenders turning down increased numbers of applicants from a wide variety of dealers, according to Startline Motor Finance
Magazine and website creates widely-respected surveys covering privately-held small companies across the world. It reported that Startline had grown by 8,475% in a three year period to the end of 2017.
PCP is classed as a supply of goods by HMRC but according to a new briefing document, certain PCP deals could be reclassified to become a supply of services, starting in June.
