Importance of a positive approach - Donal's Diary ECONOMIC AND MARKET OVERVIEW FROM BLUESTONE MOTOR FINANCE
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ISSUE FOUR OCTOBER 2020
ECONOMIC AND MARKET OVERVIEW
FROM BLUESTONE MOTOR FINANCE
Donal’s Diary
Importance of a
positive approach.
motor finance
DONAL’S
DIARY
The importance of a positive
approach, backed up by action
By Donal Murphy MD Bluestone Motor Finance
Across the motor retail sector news that Ireland · The shift from public to private transport
was to move to Level 5 under the Government’s is likely to continue;
Plan for Living with COVID, for six weeks was
· The growth of SME business will surely be
disappointing. Naturally, we recognise the
rationale, but nevertheless, having seen some a growing feature in our economy;
positive signs in the used market and · Digitisation and tools such as open
September new car sales, it would be good to banking will change the financial services
sustain momentum. landscape;
As a business, we are staying open, with our · There is likely to be an economic ‘shock’ to
team remaining home-based. We will continue
many people created by COVID-19 that will
to support our valued dealer network and unless
have consequences on finances.
there has been a significant change in an
applicant’s circumstances which could impact As a specialist lender, we are well-placed to help
affordability, all approved pipeline applications a broad spectrum of people access car finance
will be honoured. To help existing applicant’s as they seek to get on their feet, switch to
whose employment is affected as part of the private transport and start or grow their
current lockdown, we can keep the application businesses.
pending and look to finalise it subject to all In short, we expect the specialist market for car
underwriting criteria having been met when finance to grow.
they have returned to work. Positives apart, the type of fresh, imaginative
More than this, we aim to keep helping the financing model we have at Bluestone does not
growing number of dealers who have mean that we can finance everyone. Integrity is
embraced online sales, including dealers who central to our approach. There is no place for
plan to offer click & collect, subject to 5KM travel providing finance people cannot afford, but
limitations and home delivery of cars. there is a place for taking those extra steps to try
As well as helping our dealers, we aim to use this and create a sale, even if that means working
Level 5 period to accelerate our development; with a dealer to help a potential customer
enhance our digital proposition, increase our re-frame their budget/make/model
communication to help dealers and potential expectations.
car buyers. We want to come out of Level 5 fitter We expect specialist lending to grow and we
and better. aim to be dealers ‘go-to’ partner for help and
None of this ambition is to ignore the challenges support.
faced by motor retailers and car buyers; we are Contact us at info@bluestonemf.ie or call us on
here to help all of our partners in these 01 644 8951, we are always ready for a chat.
challenging times. Nevertheless, we must look My best wishes
forward; the social, economic and digital
landscape for car buying is changing and as an
industry, pivoting to embrace changes can only Donal Donal Murphy
help us to gain a new momentum in the Managing Director
coming months. Bluestone Motor Finance
NEWS
UPDATE
Budget implications for the Motor Industry
An extra €1.51 for a tank of diesel and market, the Industry is disappointed with the
€1,000 on the price of the average increase in VRT announced in Budget 2021.
new car are the major changes for Overall, the changes to the VRT system result
in an average €1,000 increase on the price of
motorists from Budget 2021.
a new family car. This will make the new car
Budget 2021, announced on October 13th saw market even more challenging for next year,
SIMI Director General Brian Cooke reducing demand and slowing down the
disappointed with the Government’s plan for replacement of the oldest cars in the national
the motor retail sector, noting; “In the context fleet with newer lower emitting cars, which in
of the current economic climate, COVID, turn will make it more difficult to drive down
BREXIT and an already depressed new car emissions.”
Changes included:
· A new structure of rates and · Adjustment of the Nitrogen
bands for VRT and motor tax, Oxide (NOx) surcharge bands so
increasing the number of VRT that higher NOx emitting
Bands to 20, with a wider gap vehicles will pay more;
between the highest and lowest
VRT rate (7% to 37%);
· Motor Tax rates will remain
unchanged for all cars in the
· Used imports subject to the old engine sized regime and all but
emissions test will have their CO2 the most pollutant cars in the
values uplifted to a level post-2008 regime;
equivalent with the WLTP test to
which all new cars are subject;
· A third Motor Tax table for cars
registered from the 1st of
· VRT reliefs for Plug-in Hybrid January next year to take
Electric Vehicles and hybrids will account of the introduction of
be allowed to expire. the WLTP emissions test.
September New Car Registrations and Used Car Imports
SIMI 01/10/20
New car registrations Registrations year to date Year to date LCV registrations
for the month of remain down 25.8% (84,535) fell 18.6% (18,930).
on the same period last year
September saw an (113,945). Used car imports for
increase of 66.3% September (9,522) declined
(5,685) when Light Commercial Vehicle 6.8% on September 2019
(LCV) registrations were up (10,221); while year to date
compared to 67.4% (2,240) compared to imports are down 40.3%
September 2019 (3,418) September last year (1,338) (49,190) on 2019 (82,435).
Key economic
data summary
as at 20/10/20
CPI (Monthly Change Sept) 0.4% Central Statistics Office
HCIP (Monthly Change Sept) 1.2% Central Statistics Office
Unemployment Rate (Sept) 5.4% Central Statistics Office
GDP (Q1) +5.6% Central Statistics Office
ECB Interest Rate 0.5% Last changed 18/09/19
Crude Oil $40.83 Prices have risen since last month
Gold €1,900.83 Prices have fallen since last month
House Price News
Source: House Price Report MyHome.ie
Region Mix-adjusted asking price % Change quarter-on-quarter % Change year-on-year
National €282,000 5.2% 5.1%
Dublin €386,000 3.7% 2.5%
Main findings
· National quarterly asking price inflation at highest level since Q1 2017
· Annual asking price inflation rose by 5.1% nationally and by 2.5% in Dublin
· Shortage of supply and strong demand driving upward inflation
We’re here. We’re open.
We’re here to support you and provide
financial solutions for your customers.
T: 01 644 8951 E: info@bluestonemf.ie W: bluestonemf.ie
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