Last month Volkswagen Financial Services published provisional figures for 2017 which revealed their number of worldwide customer financial contracts is expected to rise by 5.2% to 6.85 million.[1]

In the UK, Volkswagen’s loan book is £15million, so it’s not surprising that Volkswagen has made an application for a UK banking license in order to continue providing consumer finance after Britain’s exit from the EU[2].

Carmakers Renault, who also operate their own banking division, form part of the expansive growth in lending that is currently being seen by some of Europe’s largest car companies. But what effect will this have on independent car retailers?

The AM Outlook Survey for 2018 reports 54% of independent retailers are expecting to see a decrease in turnover this year[3] in addition to the challenges they face from regulatory scrutiny and possible further intervention, through to issues around diesel.

Our view is it’s entirely plausible that we may see a number of departures from the market this year. Yet another reason to continue our campaign for sustainable, fair and responsible access to credit.

Greg Stevens

19th January 2018

[1] https://www.autofinancenews.net/volkswagen-financial-expects-record-earnings-for-fiscal-year-2017/

[2] https://www.pymnts.com/loans/2017/volkswagen-banking-license/

[3] https://www.am-online.com/news/latest-news/2017/12/19/what-does-2018-hold-for-uk-car-dealers