News

Lender V12 to pull car finance products after parent company withdraws funding

  • End of the road for V12 Vehicle Finance
  • Parent company Secure Trust Bank to pull out of automotive after ‘heavy losses’
  • Dealers set to be officially put on notice tomorrow (July 4)

Time 11:24 am, July 3, 2025

Lender V12 is to pull out of the motor finance industry after parent company Secure Trust Bank decided to withdraw funding.

The Solihull-based firm confirmed the news in a statement yesterday and Car Dealer understands that retailers will be officially put on notice tomorrow (July 4).

Sources have indicated to Car Dealer that retailers will be able to use V12 as normal for the next three months, before then being given 120 days to settle remaining stock.

As well as car loans, V12 offers dealers stock funding with a large number of dealers now forced to look for new lines of credit for their businesses. Dealers use stock funding to buy cars on loans that typically last around 90 days and are charged for loading them on to the line of credit. It allows dealers to operate by effectively using borrowed money to pay for their stock.

Bosses at Secure Trust Bank say that the decision comes as a result of a ‘strategic repositioning of the group’, which follows hefty losses in the last year.

The firm’s 2024 accounts show a pre-tax loss of £21.8m, which made up almost a third of the bank’s entire adjusted operating costs for the year.

It is now expected that 78 job will be cut before the end of 2025, with a total of 284 positions said to be at risk by 2030.

Confirming the news, David McCreadie, chief executive of Secure Trust Bank, said: ‘The strategic repositioning of the group, as we rapidly approach our £4bn net lending target, marks another critical milestone in our optimising for growth strategic framework.

‘We have made the difficult decision to stop new lending in vehicle finance, our lowest return business line, and to redeploy capital to our three higher returning businesses of retail finance, real estate finance and commercial finance.

‘This pivot will allow the group to prioritise these established specialist businesses and achieves further simplification of the group combined with the removal of a significant level of costs.’

The move will see stock funding and vehicle finance withdrawn from car dealers up and down the country.

Several have already been in contact with Car Dealer to bemoan the decision, which leaves them facing mountains of fresh paperwork to set up with new providers.

One retailer said the news had been confirmed by their rep, who was ‘crying’ during the call.

Secure Trust Bank expects to save around £25m in operating costs over the next five years, as a result of axing vehicle finance.

However, the board does anticipate that restructuring charges will cost around £5m.


Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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