Concerns around the growing number of motor purchases being financed via personal contract purchase (PCP) have regularly featured on news pages during recent months. It’s understandable then that S&U (SUS) sought to reassure investors that it is not involved in the PCP market. What’s more, since its average loan size is just £6,200, any changes in that market that could have a knock-on effect on car residual values would only have a limited impact on S&U’s business, according to management.
Trading at motor finance business Advantage also remained buoyant during the two months to July. Management reported a rise in quality loan applications, while new loan transactions were up a fifth on the same time the previous year. Collections were also up more than a quarter and hit a record £10m during July.