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S&U reassures on credit quality

The motor finance provider has distanced itself from the personal contract purchase market
August 10, 2017

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.

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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.