- Strong increase in net receivables
- Average credit scores on the rise
Like so much else within the broader automotive sector, modes of motor financing appear to be realigning in response to evolving consumer trends. Earlier this year, Stellantis (US:STLA), the holding company for Fiat, Peugeot, and Citroën, took steps to expand the financing and leasing aspects of its business. Curiously, the move came as the number of new car buyers who financed their car through dealer-sourced finance appears to be trailing away, while the gradual shift in favour of electric vehicle sales is precipitating changes in the way that new cars are financed.
None of this appears to have had a detrimental impact on S&U’s (SUS) financing activities. The car and bridging loan lender saw a 13 per cent increase in net receivables to £417mn, aided by efficient collections and debt quality at both its Aspen Bridging and Advantage Finance arms. This was borne out by first-half performance at Aspen, where repayments and recoveries hit a record £66.8mn, while Advantage’s finance…
