CAN cars start to be delivered to customers now?
The short answer from the Department for Business, Energy and Industrial Strategy (BEIS) is yes – but there are conditions.
Like many businesses, car dealerships, showrooms and logistics operations have been shut down during the current Covid-19 pandemic, although workshops have stayed open to provide urgent car repairs and other vital services.
BEIS has confirmed that car deliveries can be made as long as the government’s strict social distancing guidelines are adhered to.
This would include:
- Thorough cleaning of the vehicle before handover
- No formal handover in terms of explaining the vehicle’s controls
- Protection of delivery drivers in terms of hygene and travel.
Details about the government’s advice on social distancing in the workplace can be found here.
One thing for certain is that The Covid-19 pandemic will change the way we do business and could provide an opportunity to further advance the way in which the motor finance sector handles customer relationships.
Startline Motor Finance said the industry has changed substantially and positively in this respect in recent years as a result of both its own initiatives and statutory interventions – but the lockdown situation is providing further impetus.
Chief executive Paul Burgess said: “Obviously, no-one wants the world to find itself in this situation with the horrible cost in terms of both lives and economic damage. However, there are positives to be found if we look hard enough.
“What we have really noticed about every aspect of our interactions as a business over the last few weeks has been the way in which everyone is pulling together.
“Many of the people we are talking to are experiencing difficulties – whether dealers whose businesses are essentially frozen or motor finance customers who are facing financial difficulties – but the striking thing has been how generally calm and constructive these conversations have been on all sides despite the circumstances.
“In recent years, as a sector, we have become much more adept at treating the customer fairly. The crisis provides the opportunity to move further forward from there.
“Our view is that the public in general will remember the people and the businesses that treated them fairly and with respect during the crisis – it is a watershed moment for the country – and motor finance should do the right thing.”
Burgess added that there were financial realities to be faced in both the short and longer term but that he was hopeful these could be dealt with in a pragmatic manner.
“Everyone currently faces distinct financial difficulties, from motor finance companies to dealers to motor finance customers. The full extent of these problems is not yet clear but the news is likely to be quite bad for at least some people.
“However, our hope – and our aspiration – is that we are able to handle these issues in the right spirit and that this will be recognised by our customers. Talking to other motor finance companies, we are finding signs of a similar approach.
“Clearly, there are going to times when financial realities have to be acknowledged but we very much agree with the statement the FLA has issued where it says that we need to keep motorists in their cars wherever possible. This is certainly our aim at the moment.”
There has been a “definite uptick” in online activity over the past seven days according to motor retail digital technology business iVendi.
Using data from the across the dealers who use its systems, the company reports that a variety of key metrics indicate the first signs of a potential rebound.
For example, web site visits to view specific used cars, vans and motor cycles during the last seven days are running at 77% compared to the average during January and February, having fallen as low as 31% at the end of March.
Online eligibility checks – which allow a customer to see their chances of being accepted for motor finance – over the last seven days are now 62% of the January-February average, compared to a low of 32%.
Also, online motor finance applications over the last seven days are now running at 17%, compared to a low of 6%.
James Tew, Chief Executive at iVendi, said: “While it is important to be extremely circumspect in the current situation, there has been a definite uptick in activity over the last few days. During the end of March and the beginning of April, we saw extreme lows and there are now signs of some metrics heading back towards normality.
“Certainly, a relatively large number of people are looking at cars, vans and motor cycles and checking themselves for finance eligibility, and we see those as encouraging signs, even if they are not yet translating into many sales.
“Where the data is still disappointing is around actual motor finance activity. While the fact that 17% of people compared to the January-February average are now making applications is a vast improvement over the low of 6% that we recorded at the end of March, it shows there is still some distance to travel.
“However, perhaps the key statistic is that payouts by motor finance companies are currently running at less than 5% of the January-February level, with many of them committed to only approving essential workers at the moment.
“With the practicalities of used vehicle dealers effectively returning to work through online sales very much a hot industry topic at the moment, this may or may not remain the norm.”
