An interesting twist to the value of brand power.
So first, banks are tracking credit performance by brand - and have noticed a difference between brands.A Honda dealer told me recently that it has not experienced an increase in bank rejections for finance applications and moreover its second-hand dealership had its best December in many years.
Although both comments seem counterintuitive, it is a sign that people are moving to second-hand quality cars and that older buyers still have access to credit.
Marcel de Klerk, managing executive of Absa Vehicle and Asset Finance, confirmed that the bank has had a positive experience when it comes to Honda customers and, as a brand, its owners have the lowest rate on default payments. Honda appeals to the mature market and its efforts to attract the younger market with the Honda Jazz only appealed to the young at heart.
Honda must be thanking its lucky stars because those brands targeting the first-time car buyer are having a far tougher time. De Klerk says there are certain brands that have high arrears experience, but he did not want to specify which brands those are.
full story from M&G here
Second, brand reputation affects how the asset holds its value over time.