Maybe its the quality of the vehicles and the liquidity of the respective owners? Heartland would mainly fund new vehicles sold to better off owners, right? Turners funds the rest of the field;
I would say you are right BP, HB also tied up with Winger Subaru I saw the other day driving past the yard in Greenlane
Yes,HGH fund mainly new vehicle franchise dealers,:Jaguar/Land Rover,Holden,and now Kia.Yet their used car finance is still bigger than new cars lending.
With HGH "upgrading" the quality of their originators,% of poor loans is very low.Intersting to is the size of HGH average motor vehicle loans has increased substantially from approx $18,500 to nearer $26,000.
TRA are the Pak"n Save of the used car market.Their market is under $20,000 ,with under $10,000 making up their biggest sector,therefore their average loan is approx $8,000 and their clientele are not as "well heeled" as the franchised dealers.
Turners still earn over 15% ROE on vehicle sales,however finance is currently still well below this level.This will slowly improve,and will greatly improve when the MTF non-recourse lending book has run its course.Longer term,maybe not quiet up to HGH's level,but a lot better than currently.
Best thing that’s ever happened since sliced bread
Turners and Heartland working together
http://nzx-prod-s7fsd7f98s.s3-websit...258/311811.pdf
My thoughts exactly.!!
A very positive announcement.
$2m additional revenue pa for AutoSure. Not clear what Heartlands share of that would be and what the expected margin (if any) is.Quote:
The partnership increases Autosure’s distribution network by ~20% and is forecast to generate $2m of
additional revenue per annum for Autosure.
Hope the agreement does not cover European and particularly British cars ... easy to break and dear to fix.
Anyway - not the world, but I guess you need to start somewhere ...
Very different premiums for British/European cars compared to Japanese.
Turners' interim result last year was announced on the 27th November.
So I expect this year's will be within a couple weeks .
Perhaps it will include full year's guidance. ?
Very positive announcement from CL8 today.
A coupe of more sleeps
Todd just can’t wait to tell us what gangbusters really means
NPBT last year $16.8m ... this year how much more?
Hope Todd learnt his lesson from last year and doesn’t ‘hint’ at a slowdown....share price still not recovered from that fateful day
Talking to Heartland Bank's CEO Chris Flood,at HGH's agm,their Marac had a bit of a slow down a couple of months ago,however they are now trading very well.
As Marac's market is at the "higher" end , I doubt Turners have lost any of their momentum.
And yes that momentum is building with:
Archers Road,Northshore should be trading really well,[Big branch in the very large Northshore market]
Marac originators now offering Autosure not only adds revenue to Autosure buts adds to Autosure's product reputation .
CL8 investment is well ahead,and Carly launch must be only days away.
Perhaps with the "no sale" of Oxford Finance, Turners could weed out more poor quality originators,which would help to further improve the quality of their loan book? "Quality rather than quantity.
Going by the number of tow trucks I see going in and out of Turners end of life vehicle yard, people continue crashing their cars.So that division should be trading well too.
The end of the MTF non recourse loan book is still a year to 18 months away.so those impairments will still drag on Turners results in the meantime.
Slow and steady with this one. If they deliver on what they said at the AGM with regard to the new sites going "gangbusters" it will be a good outcome for holders. If there's no growth then this stock is going to get punished....