Significant growth in the UK motor finance market has resulted in both increased scrutiny from regulators and ongoing competition from financial services challenges. Lenders, brokers and vehicle manufacturers should all take steps now, and in the longer term, to protect their market position.
Regulatory focus on the third-largest lending sector
In 2018 the UK motor finance market reached £64bn, making it the third-largest lending sector. Research shows that UK consumers trade their cars more frequently than elsewhere in Europe and the hold periods have been coming down, largely as a result of greater availability of finance.