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Tim Smith, head of Black Horse Distribution

My last column looked at stock supply in the Used Car Market and the impact of higher prices and interest rates on consumers already hard pressed by cost of living challenges.

Currently the economy remains volatile as we continue to see interest rates respond to inflation figures and saw a surprise hold on Bank Base Rates in September. Whilst a hold is better news for our customers, the uncertain outlook is leaving them hesitant and overall economic trends continue to put families under pressure with everyday living costs.

The FCA’s latest financial lives survey in January 2023 stated that 71% of respondents (36.9m modelled), either had no disposable income (15%) or had seen their disposable income decrease (56%) over the previous six months. We know that their financial position is very likely to have become tougher since then.

Other statistics from the regulator reflect the correlation between these statistics and the level of customers becoming financially vulnerable or vulnerable in other ways because of their financial position. They report that an estimated 52% of borrowers may be experiencing vulnerability in the current economic circumstances and which represents an increase of 4% from 2020.

Spotting the signs of potential vulnerability in customers requiring finance takes time, effort and above all a cultural commitment from all involved. This investment protects customers today and our business models in the future as the quality of sales and customer outcomes is protected.

Under Consumer Duty the focus on helping vulnerable customers continues as a consistent theme and direction of travel. At Black Horse we remain focused on continually developing our approach to identifying vulnerability at the right point in the customer journey and keeping customers safe in testing times.