- DCA provision sees Mercedes-Benz UK finance in £365m loss
- FCA investigates claims management company
- Waylands’ Vicky Hart joins board
- Wessex Garages repeats loss in 2025
- WEEK AHEAD: SMMT December new car registrations
- FTSE 100 in record rally
- Interest rate fall predicted
- Tesla loses global EV crown to BYD
- Global EV growth slows
- OPINION: Starting positive
DCA provision sees Mercedes-Benz UK finance in £365m loss
Latest accounts show Mercedes-Benz’s UK finance arm swung to a £364.6m loss in the year ended December 2024, from a £69.6m profit a year earlier.
The Times reports it is bracing for a £424m hit from ‘mis-sold’ DCA car loans – “the biggest bill disclosed so far by any carmaker”.
Mercedes-Benz of Germany revealed it had set aside €422m (£368m) in Q3 for the scandal, but the latest accounts for Mercedes-Benz Financial Services UK “shed further light on its exposure.
“It took a £395m charge for 2024, which came on top of the £28.8m it had previously set aside for the affair.”
Lloyds Banking Group has earmarked €1.95m to cover its potential redress, and BMW’s finance division has booked a provision of almost £207m.
After consultation closed last month, the FCA plans to finalise its redress rules in either February or March. “If lenders oppose the authority’s final plan, they could take it to court.”
FCA investigates claims management company
The FCA has opened an enforcement investigation into The Claims Protection Agency (TCPA) following concerns about its advertising and sales tactics in relation to potential motor finance claims.
“The FCA is investigating what customers were told about the amount of redress they might obtain, whether they were told they could make a claim for free, and whether they were pressured to sign up.
“Announcing the investigation allows TCPA customers to consider their options.”
The FCA adds that it has not reached any conclusions on whether TCPA breached any regulatory requirements.
Waylands’ Vicky Hart joins board
Vicky Hart has been promoted to marketing director at Waylands. She will oversee the group’s digital transformation alongside a focus on customer communications.
“Since joining the business in 2024, it has been hugely exciting to be part of a team with such drive, focus and agility,” said Hart. “The opportunity to continue to contribute at a deeper level, and to continue to build on this momentum, is an absolute privilege.”
CEO John O’Hanlon said that, over the past 18 months, Hart has “been hugely important to Waylands, driving all areas of our digital and physical marketing.
“I am delighted that Vicky has agreed to join the board as such a dynamic time for our business.”
Wessex Garages repeats loss in 2025
Wessex Garages has recorded a loss before tax of £1.46m for the year ended March 2025, almost identical to 2024’s loss of £1.47m. Turnover grew slightly, from £260m to £270.1m.
“The company was unable to fully mitigate the key areas which impacted on its business during the year,” said the directors.
These included a new car market “heavily distorted by the fleet and Motability sectors, adoption of electric vehicles in the marketplace, increase in minimum wage and pension costs, [and] increases in inflation, interest rates and the general economic uncertainty”.
WEEK AHEAD
Tuesday, SMMT December new car registrations
Tuesday, BRC shop price index
Thursday, Halifax house price index
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DATA INSIGHT
FTSE 100 in record rally
10,000: The FTSE 100 broke above the 10,000 level for the first time on the first trading day of 2026. It follows a strong 2025 with the best performance in 16 years outperforming the S&P 500.
Interest rate fall predicted
2.75%: Interest rates will fall to 2.75% after the summer, the lowest rate since November 2022, experts have forecast. Lombard Odier says policymakers will be forced to act because of a collapse in job vacancies and a rise in unemployment.
GLOBAL AUTO
Tesla loses global EV crown to BYD
Tesla sales fell for the second consecutive year in 2025, dropping it behind BYD in the global ranks of electric car makers for the first time. Tesla full year sales fell 8.6% to 1.64m while BYD rose 28% to 2.26m.
Global EV growth slows
Electric car sales are set for their slowest annual growth since 2020, reports the FT. A cooling in red-hot Chinese demand, weaker growth in Europe and contraction in the US means EV sales will rise 13% to 24m in 2026, down from an estimated 22% increase in 2025.
OPINION
Starting positive
A new year equals not just a fresh start but also fresh positivity. We’re all used to requesting and leaving reviews for goods and services so I’d like to start 2026 with a positive review.
I’ll keep this story fairly brief, but over the Christmas break I helped my mother-in-law look for her next car. She loves her Suzuki Ignis but with some bigger miles coming up in 2026 she thinks something a bit more suitable to cross-country trips would be more appropriate.
Knowing she’s not great with change, I found a Suzuki Vitara listed at the same retailer where she bought the Ignis.
Before visiting we called and messaged online, both resulting in near instant return contact and an appointment set for later the same day.
The salesman was superb. An unaccompanied test drive was sorted swiftly. Her car was valued fairly. There was zero pressure from the salesman, but he was happy to negotiate, something my mother-in-law was worried about.
And while we came close to a deal, it hasn’t quite crossed the line at time of writing. But I can say this, when she is 100% ready to buy, she will go back to that retailer all because of the experience.
So, may all your customer interactions in 2026 be as positive as the one my mother-in-law and I experienced at Blackshaws in Morpeth.
Tristan Young
Editorial Director
Auto Sunday
Get in touch: tristan@autosunday.co.uk
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