- MotoNovo owner hits out at FCA redress scheme
- Lenders want chancellor to narrow FCA redress
- Latest Chinese brands make NFDA survey debut
- Vans to swerve EV pay-per-mile tax… but PHEVs to be hit?
- Chinese bus remote ‘kill switch’ to be investigated
- Small business filing rules still under review
- WEEK AHEAD: Motorpoint interims
- Pensioners face budget tax raid
- House prices hit new record
- CarMax fires CEO
- China lifts export controls on Nexperia chips
- OPINION: Why EV-only pay-per-mile misses the point
MotoNovo owner hits out at FCA redress scheme
FirstRand, the South African bank which owns MotoNovo in the UK, has warned shareholders it may have to increase its provision for car finance redress scheme payments after analysing the FCA’s consultation paper.
In a statement to shareholders, FirstRand said it “remains of the view that the scheme has moved materially beyond the group’s expectations of what can be considered proportionate or reasonable, and the group is not aligned on or in agreement with many of the proposed outcomes put forward by the consultative paper.
“FirstRand is also concerned that the impact of the scheme would be negative for the broader UK economy given the high likelihood of a contraction in the supply of credit to consumers.
“The group notes to shareholders that, based on the consultative paper, it may be required to raise a further provision in the current financial year, driven mainly by… the increased likelihood of a higher number of pre-2021 motor finance agreements falling within the scope of the scheme, which now covers all discretionary commission arrangements, with the additional inclusion of some post 2021 to November 2024 fixed commission agreements”.
The bank added increase payments would also be driven by: “The FCA’s proposed methodology for the calculation of redress, which is, in the group’s view, not aligned to actual potential customer loss (if any).”
Lenders want chancellor to narrow FCA redress
Lenders want to exclude loans between 2007-2014 from the FCA DCA compensation scheme. They believe chancellor Rachel Reeves can intervene by blocking the required secondary legislation needed to give the FCA power to enforce this.
The FCA did not become responsible for consumer credit until 2014. However, there are 5.3 million finance deals that could require redress for the 2007-14 period.
However, the FCA believes it does not require new legislation, reports The Sunday Times. “We are satisfied we have the powers to implement the scheme we are consulting on.”
Latest Chinese brands make NFDA survey debut
This autumn’s NFDA Dealer Attitude Survey, out tomorrow (Monday), will include BYD and Omoda for the first time.
The additions bring the total number of brands surveyed to 33.
Market pressures, particularly around EVs, are understood to have impacted many areas of the latest survey.
Analysis of the full results will be available in the December issue of sister title Auto Market Insight.
Vans to swerve EV pay-per-mile tax… but PHEVs to be hit?
Van drivers are expected to avoid the government’s rumoured electric vehicle pay-per-mile tax – but plug-in hybrid cars will be included, reports The Sunday Times.
The new electric vehicle tax is set to start in 2028. PHEVs will be charged a discounted rate, meaning drivers will pay both fuel duty on petrol and the per-mile levy on electric.
Carmakers are reportedly fuming, while Vertu’s Robert Forrester has called the pay-per-mile scheme a “bureaucratic nightmare… it just puts another nail in the coffin of the new EV market”.
Both he and Andy Palmer, former Nissan COO who was instrumental in launching the Leaf, say the ZEV Mandate will have to change when the pay-per-mile scheme is confirmed.
Officials are understood to have told industry leaders that EV drivers will be required to estimate yearly mileage and then log distances either monthly or annually at an online portal. “Industry sources say they have been told that this could include asking drivers to upload pictures of a car’s odometer,” reports The Sunday Times.
Chinese bus remote ‘kill switch’ to be investigated
The Department for Transport is working with the National Cyber Security Centre to understand whether electric buses made by Chiense firm Yutong can be remotely deactivated.
An investigation in Norway found the firm has access to a ‘kill switch’ that could be activated mid-transit. Denmark has launched an urgent review following the findings by Norwegian officials. UK government officials are now working with the NCSC to do the same.
Thera are around 700 Yutong busies on UK roads, reports The Sunday Times, mainly in Glasgow, Nottingham and south Wales.
Small business filing rules still under review
The government is “still considering” whether to scrap reforms that would force smaller companies to reveal revenues and profits, small business minister Blair McDougall has said.
In June, Companies house said that from April 2027, ‘small and micro’ companies would be required to file P&L statements for the first time. Within days of the announcement, business secretary Jonathan Reynolds said the requirement was being “paused” over concerns it created unnecessary red tape.
Now, speaking to The Times, McDougall has indicated all options are still on the table. “We’re balancing it at the moment and discussing it.”
WEEK AHEAD
Tuesday, UK unemployment
Wednesday, Motorpoint interims
17 & 18 November, Automotive Leadership Network meeting. Dinner speaker: Sir Chris Hoy. Key discussion topics: Future of motor finance, US trade tariffs, Cyber security and more. Contact Laura Coase for more info
DATA INSIGHT
Pensioners face budget tax raid
£380: Extra tax faced by more than nine million pensioners under the chancellor’s expected budget tax proposals. The basic, higher and additional rates of income tax are expected to go up by 2p, while national insurance will be cut by 2p for earnings under £50,270.
House prices hit new record
£299,862: The average house price recorded in October by the Halifax house price index. They have increased at their fastest pace since January, with the annual rate hitting 1.9%.
GLOBAL AUTO
CarMax fires CEO
CarMax has fired CEO Bill Nash in a leadership shakeup, reports Automotive News. His last day will be 1 December. The move is being characterised as a need to “strengthen its business”.
CarMax has forecast an 8-12% decline in Q3 used vehicle sales, and Q3 earnings are expected to be impacted. J.P. Morgan downgraded its rating on CarMax stock following the news of the CEO change. Shares plunged 13.9% after news of Nash’s exit.
China lifts export controls on Nexperia chips
China has granted exemptions to export controls on Nexperia chips for civilian applications, reports Automotive News. It is expected to ease pressure on the global auto industry. German and Japanese companies have already said deliveries of Chinese-made Nexperia chips have resumed.
OPINION
Why EV-only pay-per-mile misses the point
As the chancellor prepares the budget, road taxation is once again in the spotlight. The Treasury’s problem is simple: as electric vehicles grow in number, fuel duty revenues shrink. The solution being floated, a pay-per-mile road charging system, is logical in principle. But the way it’s applied will determine whether it’s seen as fair reform or another own goal.
Pay-per-mile taxation is, fundamentally, the fairest way to charge road users. It doesn’t penalise ownership, it taxes use. One driver could have four cars in the garage but would only pay when driving them. That aligns tax with actual road wear, congestion and environmental impact. For car retailers, that’s a far better prospect than any levy on ownership, which would chill enthusiasm for buying and running cars.
However, and it’s a significant ‘however’, fairness disappears the moment such a scheme targets only electric vehicles. By singling out EVs for road charging while internal combustion cars continue paying fuel duty, the Chancellor would send precisely the wrong message to consumers: that electric cars are about to get more expensive to run. At a time when the government wants the industry to accelerate EV uptake, that’s an extraordinary contradiction.
A smarter approach would be to make the system universal. Phase out fuel duty and introduce pay-as-you-drive charging for all vehicles, regardless of what powers them. That way, the Treasury secures a sustainable revenue stream, drivers see transparent pricing, and the market gains clarity. It would also encourage fair competition between technologies, rather than distorting it through selective taxation.
The budget is an opportunity to reset how Britain funds its roads for the electric age. But if the chancellor gets the balance wrong, she risks stalling the very transition it aims to finance.
Tristan Young
Editorial Director
Get in touch: tristan@autosunday.co.uk
ISSN 2977-6597