Kew Vehicle Leasing leads vehicle broker industry by disclosing finance commission

Kew Vehicle Leasing is to openly disclose the amount of finance commission it receives on all regulated Personal Contract Hire (PCH) agreements. The move is a bid to lead the industry with transparent processes as other finance sectors come under investigation from the Financial Conduct Authority (FCA) regarding the amount of commission paid to finance brokers and dealers. Although Kew Vehicle Leasing is a leasing broker and not a car finance broker, its senior executives say it is a bold step that will set the company apart. It will also disclose the lender.

Kew Vehicle Leasing leads vehicle broker industry by disclosing finance commission

Dec 06, 2019

Kew Vehicle Leasing is to openly disclose the amount of finance commission it receives on all regulated Personal Contract Hire (PCH) agreements. The move is a bid to lead the industry with transparent processes as other finance sectors come under investigation from the Financial Conduct Authority (FCA) regarding the amount of commission paid to finance brokers and dealers. Although Kew Vehicle Leasing is a leasing broker and not a car finance broker, its senior executives say it is a bold step that will set the company apart. It will also disclose the lender.

Auto finance captives have the advantage in developing servitized auto finance. But are they using it?

Auto finance captives and their OEMS are grappling with a range of challenges which are stretching their development resources to the limit and are having the effect of putting the brakes on development of servitized auto finance. If they allow investment in connected cars, electrification and autonomy to divert their attention away from servitized auto finance then they risk missing out on income streams projected to grow to nearly half of finance providers total revenue by 2030. This is one finding from a new research report Gearing up for servitization in auto finance that is due to be released by Genpact, a global professional services firm, at the International Asset Finance Network on December 12th, 2019 in London.

Auto finance captives have the advantage in developing servitized auto finance. But are they using it?

Nov 18, 2019

Auto finance captives and their OEMS are grappling with a range of challenges which are stretching their development resources to the limit and are having the effect of putting the brakes on development of servitized auto finance. If they allow investment in connected cars, electrification and autonomy to divert their attention away from servitized auto finance then they risk missing out on income streams projected to grow to nearly half of finance providers total revenue by 2030. This is one finding from a new research report Gearing up for servitization in auto finance that is due to be released by Genpact, a global professional services firm, at the International Asset Finance Network on December 12th, 2019 in London.

Want auto servitization to work? It’s time to shift the cost structure

Cars-by-subscription are an attractive product for auto customers seeking to get a more flexible term agreement than traditional leasing or personal contract purchase. But uptake has been slow because subscriptions are currently priced as premium products. To reduce price, original equipment manufacturers (OEMs) and captives, wholly-owned subsidiaries that finance car purchases from the parent firm, need to focus on changing the underlying cost structure. This is one finding from a new research report Operationalizing Servitized Auto Finance that is due to be released by Genpact, a global professional services firm, at the International Asset Finance Network on December 12th, 2019 in London.

Want auto servitization to work? It’s time to shift the cost structure

Nov 18, 2019

Cars-by-subscription are an attractive product for auto customers seeking to get a more flexible term agreement than traditional leasing or personal contract purchase. But uptake has been slow because subscriptions are currently priced as premium products. To reduce price, original equipment manufacturers (OEMs) and captives, wholly-owned subsidiaries that finance car purchases from the parent firm, need to focus on changing the underlying cost structure. This is one finding from a new research report Operationalizing Servitized Auto Finance that is due to be released by Genpact, a global professional services firm, at the International Asset Finance Network on December 12th, 2019 in London.

EMEA

Fleet Alliance Group calls for greater consumer education on car funding options

Nov 21, 2019

Fleet Alliance Group, the UK-based vehicle leasing and fleet management company, is calling for an education drive to help improve public understanding of car finance. The call comes after the Financial Conduct Authority began consulting on plans to ban the way in which some car retailers and other brokers in the motor finance sector receive commission. Currently, some motor finance brokers receive commission which is linked to the interest rate that customers pay. The broker can set that rate and the FCA found that the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests.

Americas

New CEO takes helm at Fair as Scott Painter steps aside

Nov 13, 2019

A new chief executive has been appointed at mobility app Fair after co-founder Scott Painter stepped down in the face of mounting pressures on the business. Painter recently announced plans to cut up to 40% of the workforce as the disruptive start-up tries to generate profits following a series of investment rounds that raised hundreds of millions of dollars. In addition to expanding its core app-based business, Fair also bought the assets of Ford Motor Credit’s subscription service Canvas in September and Uber’s Xchange leasing portfolio in January 2018.

Asia Pacific

Hyundai and Kia invest $300m in India’s largest mobility service provider Ola

Mar 19, 2019

Hyundai Motor Group has announced a $300 million investment into Uber-rival Ola, as the car manufacturer expands into providing mobility solutions and related fleet services. The agreement will see Hyundai, Kia and Ola collaborate on developing fleet and mobility solutions by building India-specific electric vehicles and support services, as well as helping Ola attract new drivers to the platform. As part of the strategic collaboration, the companies will jointly develop services to operate and manage the Ola fleet, as Hyundai Motor Group expands its operations from automobile manufacturing and sales to mobility services and total fleet solutions.