The volume of the new consumer car financing business increased

According to the Finance and Leasing Association, the consumer finance market saw new business growth of 7 percent in September 2020 compared to the same month last year.

However, the volume of new business in the first nine months of 2020 was 22% lower than the same period in 2019.

In the consumer new car financing market, the volume of new business increased by five percent in September 2020 compared to September 2019, while new business in the nine months to September 2020 decreased 27 percent.

However, FLA member-funded private new car sales in the twelve months ended September 2020 stood at 94.5% – the second highest annual penetration rate in history.

The new business volume for the consumer car market increased 9 percent in September 2020 compared to the same month a year earlier, while it was down 19 percent in the year to September 2020 compared to the same period a year earlier.

Geraldine Kilkeley, chief researcher and chief economist of the FLA, said: “The latest FLA data show that the consumer auto finance market has played a key role in Britain’s economic recovery since the deadlock’s first restrictions were eased in June.

“As the UK enters a new phase of national impasse, it is important for the government and the Bank of England to provide direct access to finance to all lenders, including non-bank lenders.

“This will allow the auto industry to meet the demand for patience and sustainable new credit.”

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Car insurance prices fell for the third consecutive quarter

Car insurance prices in the UK fell for the third straight quarter. Drivers now pay an average of £ 50 less than early 2020.

This is from Confused.com’s latest auto insurance price index, which shows that the average cost of comprehensive auto insurance is now £ 765 after dropping £ 5 in the last quarter.

Figures based on pricing data comprising nearly six million customer offers per quarter also show that prices have fallen 2% over the past year.

And they could fall even further after the Financial Conduct Authority (FCA) announced last month that they would prohibit insurance companies from increasing premiums for policyholders who are in what is known as “price increases.”

Louise O’Shea, CEO of Confused.com, said, “These have been turbulent months for the auto insurance world and will likely continue for some time as insurance companies try to adapt to the constant and dramatic changes in driver behavior. Not to mention how they handle it. much-needed changes to the FCA that were announced last month.

“FCA has proposals to make the switch easier by simplifying the automatic renewal cancellation process so we can see how people are using this as they become more price conscious.”

The index, co-produced by Willis Towers Watson (WTW), shows that drivers crossing the Scottish border benefited from the biggest quarterly price drops and their premiums fell 5% on average to £ 554.

Inland London was the only region in the UK to break the downward trend in prices in the last quarter as the cost of comprehensive auto insurance rose 3%.

Drivers aged 17 and over benefit from the largest price reductions compared to other age groups. They saw a 7% cut in quarterly prices and reduced their annual premium to £ 1911.

Meanwhile, 33 year old policyholders experienced the largest price increase of 2%, increasing their annual premium to £ 705.

“One of the biggest challenges for insurers and intermediaries is managing the transition to new global prices in the face of current market pressure on competition and therefore deciding how and when to make price changes,” Graham said. Wright, UK Head of P&C Personal Line Pricing at WTW.

“This definitely remains one of the most challenging moments in insurance pricing.”

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Used batteries removed from electric BMWs

One of the biggest criticisms of electric cars is what happens to their strong batteries when they break down and, in plug-in vehicles, must be removed.

Electric batteries are not only expensive to replace, but also require highly skilled labor to extract the precious metals they contain, and even then are difficult to recycle – and this can lead to huge piles of waste, experts warn.

German automaker BMW has found a solution for its long-range electric vehicles that give their batteries a second life as a mobile powertrain to provide a solution for charging other cars with an add-on.

The car brand will supply the British energy storage company with a deactivated battery module from BMW and a Mini electric model that can be used in a mobile unit.

The aim is to provide a sustainable used battery model that loses capacity over time and is deemed inefficient in an electric car after years of use.

As part of a new partnership with the auto giant, Off Grid Energy has developed the first prototype of a mobile charger powered by a lithium-ion battery module from the Mini Electric development vehicle.

It has an output of 40 kWh, fast charging 7.2 kW and will be used next year at BMW and Mini UK events.

As more battery modules become available over time, these devices can use multiple EV batteries to create a combined system with capacities up to 180 kWh and capable of delivering up to 50 kW of power.

“When this unit is used to replace the traditional method of generating electricity temporarily, the battery module will at least double the CO2 reduction achieved when it is first used in a car and continue to have a positive effect on reducing CO2 emissions,” the company said. for energy storage.

Graham Greave, CEO of BMW Group UK, commented on the partnership: “The BMW Group will have 25 models of electrified roads by 2023 – half of which are fully electric.

“We are excited to work with Off Grid Energy to find sustainable ways to continue using this valuable battery even after years of investing in our electric vehicles.”

Like many electric models on the market, the batteries in BMWs and mini-vehicles are guaranteed for eight years or 100,000 miles.

After that, according to the car manufacturer, the battery can still last up to 80% of its original capacity.

However, he admits it is “inevitable” that electric cars will no longer function optimally for cars as we get older.

According to estimates by the Canadian battery retired company Geotab, the average capacity loss for electric cars and plug-in hybrids after six years is around 12%, essentially reducing capacity by 2% per year.

BMW says that while its car battery performance is reduced – enough to pull the device out of the vehicle – it can still serve a secondary purpose as a portable power source as part of its sustainability and resource efficiency strategy.

Oliver Zipse, Chairman of the Management Board of the BMW Group, said: “The use of resources will determine the future of our society – and of the BMW Group. Our goal as a premium car manufacturer is to show the way to sustainability. That’s why we are responsible in the here and now. “”

Earlier this year, the University of Warwick announced that it had created a “fast rating” system for a second-life battery to see if it could be used for research after vehicles equipped with Nissan Leaf EV power supplies were discontinued. .

When the battery life is less than 70 percent, the report says they can be reused for less demanding second-life applications such as household and industrial storage.

The university says, “Classified second-life batteries provide reliable and convenient energy storage options for a wide range of customers: from roaming electrical products – power supplies for customers on the move, to home storage products – for customers with solar panels that store the energy produced. .

“More importantly, packaging can be used for storage, increasing the number of regularly renewable energy sources on the network without compromising supply security.”

Professor David Greenwood of WMG, University of Warwick added, “Car batteries offer some great environmental benefits, but they are also resource intensive.

“Unlocking the second battery life increases the environmental and economic value we extract from this resource before it has to be recycled.”

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Buying a car during lockdown?

As we entered a full lock down a few weeks back did people still buy or lease a car ?

Looking around it seems people have been it does seem odd as now most people are working from home but with lots of offers are around so it shows car sales strong in new and second hand.

I was looking around and found the customer support or enquiries to be very poor and this is from the top dealerships.

When you send a enquiry and have no reply or feedback it really does put you off a car this was found with landrover Audi and Mercedes.

If they improved this how many more cars would they sell or lease ?

The car industry is changing with people these days not even looking at a car and ordering it for delivery but i feel the service needs big improvements.

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