Auto Retail Agenda: 15 April 2024
14 April 2024
- BARCLAYS DCA MOVE MAY DELAY COMPENSATION
- MORE BIG MOTORING WORLD RESIGNATIONS
- CONSTELLATION CLOSES CAR SUBSCRIPTION SERVICE
- TESLA ‘ZERO SERVICE’ PLANS
- VINFAST SEEKS NETWORK DEVELOPMENT MANAGER
- BMW IN US RETAIL STRATEGY BOOST
- VAN MOSSEL TAKES OVER ICONIC BELGIAN RETAILER
- STOCKWATCH
- COMING UP: UK unemployment, CPI and RPI
- HOMEOWNERS OPT FOR LONGER MORTGAGES
- PENSION WARNING: BE AWARE OF EARLY LIFESTYLING
Barclays DCA move may delay compensation
Motorists anticipating a PPI-style windfall from historic discretionary commission Arrangements (DCA) may have longer to wait following action last week by Barclays. The bank has filed a legal challenge against the Financial Ombudsman Service (FOS) over a decision in January that it should pay £1327 in ‘hidden commission’ from a historic DCA.
Experts say the challenge could now hold up the process for customers awaiting an outcome from the ombudsman.
Barclays is basing its challenge on what it says were misinterpretations of the law. It has not given any further details and court filings have not yet been published.
“This challenge relates to a single, specific case,” Barclays told the Telegraph, “and we continue to support the FCA’s review into historic motor financing arrangements.”
The FOS called the legal challenge “disappointing… when people take out a car loan, it is impetrative that they are treated fairly and the financial implications are totally transparent”.
Lloyds, the only other lender to have a complaint upheld following thousands of complaints to the FOS, said it was “reviewing the decision”.
No win no fee law firm Bott + Co. said Barclays’ judicial review was launched “at the eleventh hour, just a day or two before the three-month deadline to bring a challenge. This is just another example of lenders doing everything possible to frustrate the compaints process and delay things further”.
Last week, the FCA warned car loan providers to conserve cash to cope with potential compensation bills. It said it will use its “regulatory tools” against firms that appear to be attempting to “avoid potential future liabilities”.
One law firm said the FCA warning “will raise concerns among many firms” about the potential financial impact of the watchdog’s inquiry.
More Big Motoring World resignations
Following the termination of Peter Waddell as a director of Big Motoring World parent company Bapchild Motoring World, a further six directors were terminated on Friday. They include James Cartwright, Neil Hodson, Alex Potter, David Thorley, Giles Gradassi and Reza Fardad.
It leaves Laurence Vaughan and Thomas Clarke (who was appointed on 7 March 2024) as the sole two directors. However, the ultimate ownership is still split between Waddell and private equity firm Freshstream.
Founder Peter Waddell has threatened legal action against his termination on social media.
Constellation closes car subscription service
Constellation has joined a growing number of business that have shut down their car subscription service – in Constellations’s case: Elmo Drive. A message on its website states: “Elmo Drive Ltd has now been wound down as a business.” Filings show the subscription service lost £16.5m in the 12 months to April 2023, up from a £1m loss the previous year.
Director Gregory Taylor resigned on 27 March.
Tesla ‘zero service’ plans
Tesla has been recruiting for a senior manager for its ‘Zero Service’ initiative. Their focus will be on identifying and eliminating the reasons for vehicles needing servicing. “The best service is no service,” CEO Elon Musk has previously said.
When Tesla first launched it the UK is said servicing was not essential.
Fleet software firm FleetCheck says the move, which would see vehicles never having to visit a workshop unless a fault was detected, would present huge dangers for vehicle operators.
VinFast seeks network development manager
Vietnamese new entrant VinFast is recruiting a network development manager. Deputy CEO Andrew Pilkington said it was part of preparations to launch VinFast in the UK. VinFast is also seeking a product manager and market analyst.
WORLD NEWS
BMW reveals US retail strategy boost
BMW is planning closer collaboration with its US retailers using mobile app technology and data sharing. The aim is to improve the customer experience and drive both loyalty and aftersales revenue.
Service advisors will be given access to historical customer data – including any negative comments made on a previous visit, to help create a smoother experience. BMW also plans to help retailers capture more service business from out-of-warranty customers.
Van Mossel takes over iconic Belgian retailer
Benelux auto retail giant Van Mossel has taken over long-established Belgian retailer Garage Mertens. It adds a further six Volkswagen sites to Van Mossel’s empire. The deal, which has now completed, was approved by D’leteren, the Belgian Volkswagen Group importer.
STOCKWATCH
Closing prices on 12 April 2024 and weekly change
Auto Trader Group 687.4p (-10.0p / -1.4%)
Caffyns 450.0p (n/c)
Halfords 154.6p (-0.6p / -0.3%)
Inchcape 698.5p (-37.5p / -5.2%)
Motorpoint 135.5p (+1.1p / +0.8%)
Pinewood 38.5p (-1.1p / -2.8%)
Vertu 66.4p (-1.4p / -2.0%)
COMING UP
Tuesday, UK unemployment
Wednesday, CPI and RPI
Friday, GFK consumer confidence
Friday, UK retail sales
27 April, NFDA Spring Ball
15 May, Radius Law Annual Conference
MONEY MATTERS
Homeowners opt for longer mortgages
Squeezed homeowners are opting for longer mortgage terms to help with affordability. 1 in 4 mortgages taken out in December last year were on terms of 30 years or more. Just 1 in 10 were on such terms in December 2021. It is “one of the main ways borrowers are managing higher rates,” said one mortgage broker.
On average, customers are paying £220 a more after remortgaging when current deals end, says Santander.
Pension warning: be aware of early lifestyling
Workers are being advised to check their chosen pension retirement age to avoid being ‘lifestyled’ too early. Lifestyling is where pensions are moved into lower-risk investments to shield from market turbulence as someone nears retirement age – but if set too early, it means people could miss out on thousands.
The default retirement age is often 65, despite the state pension age now being 66. It could mean someone is lifestyled from age 60, or even from age 55, despite planning to work for many more years.