6:50 am, January 22, 2025
Lloyds and Close Brothers shares surge after Reeves steps in on car finance case
Motor finance giants Lloyds and Close Brothers’ share prices rocketed on Tuesday after Chancellor Rachel Reeves sought to intervene in a court hearing over the potential mis-selling of car loans.
The Supreme Court will hear a case in April where it will decide whether to uphold a landmark ruling on hidden motor finance commission arrangements, made in October.
Such a decision could eventually lead to car finance firms paying out as much as £30bn in combined compensation to consumers but the Treasury submitted an application to the Supreme Court this week, arguing it should be able to give evidence in the upcoming case.
Fall in company collapses last year but experts warn of ongoing ‘headwinds’
Company collapses in England and Wales fell last year, according to new official figures, but compulsory liquidations soared to a 10-year high and experts warned of more uncertainty for firms in the coming months.
Some 23,872 companies went out of business in 2024, the Insolvency Service said, down 5% on the previous year.
Despite the drop year on year, the number of insolvencies was far higher than most of the last decade, and remains at levels last seen during the 2008 financial crisis.
Alpine’s new A290 will be priced from £33,500
Alpine has revealed prices and specifications for its first electric vehicle, the A290.
Prices kick off at £33,500 for the entry-level GT model which features a host of standard equipment such as a 10-inch navigation touchscreen, heated front seats, 19-inch alloy wheels and LED headlights.
Other trim levels in the range consist of GT Premium at £36,000, GT Performance for no extra cost, GTS at £37,500 and the flagship GTS Premiere Edition at £38,500 which boasts blue brake calipers, black wheels, sports tyres and the more powerful electric motor setup.
Tuesday’s Car Dealer headlines
Profits collapsed at Motability despite revenue and customer numbers soaring in 2024
Motability Operations PLC reported a £565m pre-tax loss for the year ending September 30, 2024, reversing a £748m profit from 2023. Despite a 24.4% revenue increase to £6.9bn and record customer growth, increased investments in EVs and new vehicle payments, residual value effects, and inflationary pressures led to the downturn.
Chancellor weighs into car finance crisis as she looks to protect UK economy
Chancellor Rachel Reeves has intervened in the motor finance scandal, urging a ‘proportionate’ Supreme Court ruling as Close Brothers’ appeal looms. Concerns over lender withdrawals and economic harm prompt Treasury warnings about regulation uncertainty and consumer finance access impacts.
Audi was most profitable brand for used car dealers in Carwow’s Q4 daily sales
Audi topped used car dealer profits in Q4 2024, averaging £3,000 per car, ahead of Lexus and Mazda. The 2019 Porsche 911 led individual model margins at £4,992, while Carwow highlighted strong demand across diverse brands and vehicle types.
Why sky high margins in motorhomes after leading more and more car dealers to switch
Car dealers are increasingly turning to motorhome sales as shrinking car margins drive change. Motorhomes offer higher profits, with some yielding £10,000 margins, according to CMS Auctions’ Shane Malpass. Dealers prioritise ‘home’ features over mechanicals, attracting steady industry shifts.
Car dealer Baylis Group opens its first Suzuki franchise in Cheltenham
Baylis Group has launched its first Suzuki dealership in Staverton, Gloucestershire, creating 15 jobs. The site joins MG and Vauxhall in Baylis’s portfolio. Suzuki GB praised the group for expanding access to their award-winning vehicle range.
The markets
The FTSE 100 rose again on Tuesday while US stocks surged, following the inauguration of Donald Trump as president.
London’s blue-chip index gained 27.75 points to finish the day at 8,548.29, up 0.3% on the day before.
In Europe, Germany’s index closed up by a quarter of a per cent, while the Cac 40 in Paris rose 0.5%.
Cooper orders review of anti-terror programme so ‘serious cases are not missed’
The Home Secretary has ordered a ‘thorough review’ of the Southport killer’s referrals to the Prevent anti-terror programme “to identify what changes are needed to make sure serious cases are not missed”.
Yvette Cooper told MPs on Tuesday she had appointed Lord David Anderson KC as interim Prevent commissioner because “independent oversight” of the programme was needed.
A litany of concerns have been raised over the years about how the deradicalisation programme works after several terror attacks were carried out by extremists who had been referred to Prevent.
Donald Trump’s first full day includes firings and an infrastructure announcement
US President Donald Trump spent his first full day back in the White House meeting congressional leaders, making an infrastructure announcement and demonstrating one of his favoured expressions of power – firing people.
The new president posted on his Truth social media network early on Tuesday that he would fire more than 1,000 presidential appointees ‘who are not aligned with our vision’, including some high-profile names.
Mr Trump fired chef and humanitarian Jose Andres from the President’s Council on Sports, Fitness and Nutrition; retired general Mark Milley from the National Infrastructure Advisory Council; former State Department official Brian Hook from the board of the Wilson Centre, and former Atlanta mayor Keisha Lance Bottoms from the President’s Export Council.
Risk to life warning as Storm Eowyn to sweep strong winds and rain across UK
A storm named Eowyn could put lives at risk as strong winds batter the north of the UK on Friday and into Saturday, the Met Office said.
Gusts of more than 80mph could cause power cuts, travel disruption and damage to buildings as Storm Eowyn threatens the country.
There could also be a danger to life caused by flying debris. The UK can expect the arrival of unsettled conditions on Thursday, which will see strengthening winds and heavy rainfall in western parts of the country overnight, the forecaster said.
