FLA survey points to an optimistic future in retail motor finance sector
The Finance & Leasing Association (FLA) has just released the results of a new survey of expectations in the retail motor finance sector. The published survey “aims to gauge senior executives’ opinions on the outlook for the UK economy and the retail motor finance industry”. The FLA are the UK’s leading and Europes largest trade association for the consumer credit, motor finance and asset finance sectors.
The first edition of the quarterly FLA Retail Motor Finance Confidence Survey shows an optimistic outlook reflecting the strong performance reported by the motor finance industry since the beginning of last year. The optimism can be attributed to an expectation of an increase in future consumer spending. Whether that will happen remains to be seen, but the survey does also show that a significant amount of responders feel a positive expectation regarding future growth in our UK economy as a whole.
Nearly two thirds of the respondents say they are expecting an improvement in market conditions over the next twelve months while benefiting from continued manufacturers’ support for using financing options to help the sale of vehicles and a low interest rate environment.
The survey also takes on board the respondents concerns regarding a number of potential risks to the industry’s performance in the year ahead. These include any weakening of the economic outlook leading to falls in business and consumer confidence and increased uncertainty surrounding the transfer of consumer credit regulation to the new Financial Conduct Authority (FCA).
The highlights of the published survey (provided in the recent FLA press release) include:
Commenting on the findings, Paul Harrison, Head of Motor Finance at the FLA, said:
“The survey brings together the views of leading executives and it is quite clear that they want a new regulatory regime which does not harm competitiveness or the availability of credit for consumers. Even though the new regulatory regime comes into force on 1 April 2014, on the Government’s current timetable the final rules will only have been published the previous month. A sensible transition is needed to ensure the industry and the new regulator are ready for what will be the biggest upheaval in consumer credit regulation for a generation.”
With such a healthy growth forecast expected in the light commercial vehicle/van finance market, now may be a great time to consider leasing or contract hire of the perfect van for your business or individual needs. Here at Low Cost Vans, our van finance products include contract hire and finance lease and hire purchase. All our finance products are provided through our partnerships with the UK’s largest vehicle management banking groups. We offer the best vans at incredibly low prices, so why not give us a call.
The first edition of the quarterly FLA Retail Motor Finance Confidence Survey shows an optimistic outlook reflecting the strong performance reported by the motor finance industry since the beginning of last year. The optimism can be attributed to an expectation of an increase in future consumer spending. Whether that will happen remains to be seen, but the survey does also show that a significant amount of responders feel a positive expectation regarding future growth in our UK economy as a whole.
Nearly two thirds of the respondents say they are expecting an improvement in market conditions over the next twelve months while benefiting from continued manufacturers’ support for using financing options to help the sale of vehicles and a low interest rate environment.
The survey also takes on board the respondents concerns regarding a number of potential risks to the industry’s performance in the year ahead. These include any weakening of the economic outlook leading to falls in business and consumer confidence and increased uncertainty surrounding the transfer of consumer credit regulation to the new Financial Conduct Authority (FCA).
The highlights of the published survey (provided in the recent FLA press release) include:
- 83% of respondents expect growth in the retail new car finance market, with 35% expecting strong growth of between 10% and 20%.
- 95% of respondents expect growth in the retail used car finance market, with more than a fifth (21%) expecting growth of between 10% and20%.
- 53% of respondents expect growth in the Light Commercial Vehicle finance market, with almost a quarter expecting growth of more than 10%.
Commenting on the findings, Paul Harrison, Head of Motor Finance at the FLA, said:
“The survey brings together the views of leading executives and it is quite clear that they want a new regulatory regime which does not harm competitiveness or the availability of credit for consumers. Even though the new regulatory regime comes into force on 1 April 2014, on the Government’s current timetable the final rules will only have been published the previous month. A sensible transition is needed to ensure the industry and the new regulator are ready for what will be the biggest upheaval in consumer credit regulation for a generation.”
With such a healthy growth forecast expected in the light commercial vehicle/van finance market, now may be a great time to consider leasing or contract hire of the perfect van for your business or individual needs. Here at Low Cost Vans, our van finance products include contract hire and finance lease and hire purchase. All our finance products are provided through our partnerships with the UK’s largest vehicle management banking groups. We offer the best vans at incredibly low prices, so why not give us a call.
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