Join co-founders of International Asset Finance Network Brian Rogerson and Edward Peck to discuss the outlook for auto and equipment finance industry as the UK starts to ease the lock-down.
Session framework
Effect of government regulation
- Auto - FCA payment holidays; PCP balloon payments; scrappage and other future schemes
- Equipment –BBLs and CIBIL
Economic timelines
- End of lockdown June/July 2020
- End of furlough November 2020
- Potential resurgence of COVID-19 Autumn/Winter 2020/2021
- New year BREXIT transition end
- Repayment scheme interest payment holidays end June 2021
Sectoral demand
- Auto demand affected by reduced appetite for public transport appetite, unemployment and potential for permanent structural changes from homeworking and increased focus on environment
- Effect of COVID-19 on niche funders, and dead cat bounce – funding investment in businesses for PPE and screens etc.
- Demand generation offers and impact on margins
Appetite of funders
- Competition for capital for auto captives versus investment in BEVs
- ABS/Block funders appetite to lend; technical defaults leading to liquidity shortages and higher cost of capital
- Future of block funding
Industry consolidation
- Which lenders will survive and which will go
- Lender risk appetite post funding
- Broker impact
Post Covid-19 landscape
- New scorecards to reflect new risks
- Real time data and early warning indicators