ANALYSTS from Leeds-based cap hpi have briefed staff from the Bank of England on the current condition of the UK new and used car markets.
The briefing analysed the record performance of new and used sales in recent years, and discussed the relative stability of the market.
cap hpi provides data and software services which focus on vehicle valuation, validation, collision, mechanical repair, and the total cost of ownership.
James Dower, senior editor of Black Book, at cap hpi said: “Given the importance of the UK motor industry to the UK economy, it is understandable that the Bank of England is interested in our perspective on the sector.
“Finance is a key driver of new and used sales, and we explained how used values and forecasts are developed and set out the cautious approach of lenders in the sector.”
The brief was given to Will Holman from the Bank’s Yorkshire & Humber Agency and Alex Golledge from South East & East Anglia Agency, who are part of a network of regional representatives that serve as the “eyes and ears” of the Bank.
The Bank is interested in consumer credit, including the car finance market, as recently covered in the Bank’s June 2017 Financial Stability Report.
cap hpi is also helping the Bank by providing relevant data-sets and analysis of the car market. cap hpi operates as part of Solera, a global provider of risk and asset management software and services to the automotive and property marketplace. Solera operates in around 85 countries across six continents.
In June, the Bank of England told banks they must put aside another £11.4bn over the next 18 months amid a lending crackdown, as it warned the economy faces a “wide range” of risks.
Concerns have been expressed about surging levels of unsecured consumer borrowing on credit cards.