Hodge partners with Blue Motor Finance to offer it a new £240m funding facility
Hodge has announced its partnership with Blue Motor Finance, offering the leading second-hand car finance and technology company a funding facility of up to £240million for two years.
Blue Motor Finance operates in the used car market, providing hire-purchase loans to consumers through its network of dealerships and brokers.
The deal is all part of Hodge’s strategy to invest in and partner with other companies to diversify its business. It has been working closely with Blue to broker the deal for the past few months.
Hodge is no stranger to motor finance, as its founder Sir Julian Hodge set up Carlyle Finance in 1977. Carlyle offered used car finance alongside the Bank’s commercial and savings business for many years, until it was sold in 2006 to South Africa’s largest car finance provider WesBank. Carlyle Finance has since rebranded to MotoNovo, which still has its base in Cardiff.
David Landen, chief executive officer for Hodge said: “I’m delighted to announce our partnership with Blue. It’s a great strategic fit for Hodge, complementing our existing business and demonstrating our strong financial position, and continued ambition to grow and deliver specialist solutions.
“We are really excited to develop the relationship with Blue over the coming months and years, and building a strong long-term partnership like this means we can grow and build on our existing mortgage, commercial and savings businesses with motor finance, leveraging Blue’s advanced technology and distribution network in the process.”
Dave added: “It really does feel like we’ve come full circle, as when I first joined in 2002 Hodge still owned Carlyle Finance, and so it doesn’t feel like a new market to us but one that we are returning to, and have a solid and secure past with.”
Tiku Patel, chief executive officer at Blue Motor Finance Limited said: “These partnerships take considerable effort, commitment, and trust to put in place and we’re delighted to close this facility with Hodge. We look forward to a long-term relationship between our businesses. This facility shows confidence in Blue’s abilities to carefully manage credit risk, delivering robust asset performance and great customer outcomes. It will further support the growth and development of both our businesses.”
