A high-performance team putting the “special” in specialist car funding

Our specialist car finance business development managers James Roberts and Stephen Barton, share their insight on the key trends in the sector and how we're backing our brokers and their customers.

James Roberts joined Aldermore in 2012 and has worked across a range of customer facing roles and was a key member of Aldermore’s specialist car team that launched in 2018.

Stephen Barton has been with Aldermore since 2016, and likewise has operated across both customer and broker facing roles, joining the specialist car team in 2019 and promoted to business development manager in 2022.

How did Aldermore become a leader in specialist car broker funding market?

James Roberts (JR): Through the close relationships we’ve developed with our brokers over several years, we’ve built true partnerships based on trust and respect. We’ve introduced tools to make working together easier and value-added services to help us stand apart from the others who operate in this competitive market.

We take a view of the wider parts of this market, not just financing new prestige cars. This means we’re open to refinance and equity release requests as customers look for capital to invest and reposition current commitments. In addition to our bespoke balloon payment quotes for cars, we’re introducing an enhanced position for horseboxes and motorhomes, expanding our presence in the high-end leisure market.

How is the team structure geared to giving your brokers the best possible service?

Stephen Barton (SB):We know how important consistency and having named contacts with specialist expertise across key points in the deal journey is to our brokers. We’ve invested heavily in our people to give our brokers the best possible service, whether it’s valuations and balloon quotes, or underwriting and pay out.

James and I are the friendly faces our brokers can call on when they need help – these strong relationships are important. But we have a whole team behind us delivering for our brokers and their customers every day. These dedicated individuals mean we can get really close to our brokers, the assets they’re funding and the customers they serve, to sit alongside them as a key funding partner.

As a team we’re closely aligned to our objectives, challenging each other to be the best versions of ourselves, developing innovative approaches to do what’s best for our brokers.

What are brokers telling you are their main challenges?

SB: In the current economic climate, interest rate fluctuations are influencing everyone. In our latest survey, 48% of brokers rated access to competitive pricing as their main challenge, and while as funders we often need to follow these trends, we need make sure we’re transparent with our brokers about these changes and communicate with them in good time.

JR: Another challenge our brokers tell us about is the speed of lending decisions, with 30% of brokers rating it as their main challenge. The market we operate in is not what you’d call “flow” or consumer lending. We’re dealing with complex transactions, with financially sophisticated customers. Our specialist underwriters want to make sure we have the full picture before giving a decision, which will often involve working together with the broker. In this highly competitive market, we’re committed to maintaining strong broker relationships to help us get to a decision as quickly as possible.

What are brokers telling you are the main challenges for their customers?

JR: The cost-of-living crisis continues to be among the main concerns for customers, even in the specialist car market. 25% of brokers rated fuel prices as their customers’ main challenge in our latest survey. While the customers in this market tend to be financially liquid, we’re seeing customers more concerned than ever about getting the best deal. Where rates remain in flux we’re committed to providing bespoke valuations and terms to give a package that balances competitiveness and putting the customer in the best position, if they decide to settle early to get their next car.

SB: On top of the price of fuel, the access to new cars and the subsequent rise in price for used cars is another challenge. 18% of brokers rated access to assets as their customers’ main challenge in our survey, however from speaking to our partners the slowing of demand may see car prices fall. This in kind will increase appetite for clients to make a purchase and we’re already seeing suppliers come out with stronger APRs. So where markets which have been held captive with deposit contributions and personal contract purchase (PCP) products, this may provide opportunities for the specialist car market to offer more bespoke solutions to these customers.

What changes in the market are you seeing around alternatively fuelled vehicles?

JR: While the trends in adoption for electric vehicles (EVs) have been well documented, 68% of brokers in our research said their customers are more conscious about investing in alternatively fuelled assets. Interest in electric vehicles is increasing and manufacturers are continuing to develop for more electric options, which is great news for both the consumer and environment.

SB: We continue to support these assets with strong balloons for those looking to switch or replace their fossil fuelled assets and those looking to refinance existing commitments.

Find out more about our specialist car offering.

Source: Aldermore Specialist Car & Transportation Broker Research August 2022 (40)