VU Compare, a revolutionary vehicle finance and insurance comparison site, is hoping to raise £250,000 in seed capital ahead of its official launch later this year.
The one-stop-shop comparison site will cover leasing, loans and insurance, and will also be the first to introduce comparison facilities for Electric Vehicle (EV) chargers and car subscriptions – the latter to be introduced during phase two of the launch.
Tim Borthwick, Managing Director of VU Compare, said: “VU Compare is such an exciting proposition and one that myself and the team working on it are exceptionally proud of. It promises to be a real market disrupter, offering a much more comprehensive suite of comparison facilities, compared to its nearest competitors.”
It is widely accepted that the UK automotive industry is a vital part of the UK economy, worth more than £78.9 billion turnover and adding £15.3 billion value to the economy. The Department for Transport, for example, reported 2.1 million new vehicles were registered in the UK in 2020, demonstrating there is a clear opportunity in the vehicle comparison space.
The latest figures released by the Finance & Leasing Association (FLA) show that the commercial vehicle finance sector reported new business was up by 126% in May compared with the same month in 2020. Moreover, 65,635 new cars were bought on finance by consumers at the point of sale as of May 2021, with the value of advances at £1.6 billion, while 26,822 were bought on finance by businesses.
Borthwick added: “With this initial seed funding round, we’re looking for £250k to help launch the site and get the initial campaign activity up and running. For any serious investor, VU Compare offers a fantastic investment opportunity with genuine returns, coupled with an ever-growing consumer market.
“At the moment, there is no UK service that specifically focuses on aggregating the various components of acquiring a new car, and that’s where we come in. We plug that gap in the market and are already looking to futureproof the business by engaging in the emerging subscription markets, which are not properly served with an effective comparison engine, and EV charging point installation.”
With the sale of new petrol and diesel cars due to end in the UK by 2030, at which point the only options will be electric or hybrid vehicles, the need for EV charging points will grow exponentially. The Government has already pledged £1.3 billion to accelerate the roll-out of charge points for electric vehicles in homes, streets across the UK and on motorways across England, so people can more easily and conveniently charge their cars. It is also providing grants for homeowners, businesses and local authorities to install charge points, and is supporting the deployment of rapid charge points.
VU Compare aims to meet this soaring demand in terms of EV chargers by offering consumers the ability to compare pricing for the charger and installation based on their postcode. The ability to find a local provider being a key unique selling point – something that simply does not exist in the market today.
Another standout feature of the VU Compare proposition is its commitment to the environment. It is no secret that the motoring industry has had a detrimental effect in terms of global warming, with cars being a major contributor to global CO2 emissions, so the company believes it has a moral obligation to help in some way offset this.
As such, VU Compare has committed to planting a tree for every unique enquiry created via the comparison site. Each time an individual creates a new enquiry, they will receive an email confirming that a tree will be planted on their behalf. Plus, the website will have a running counter totalling the number of trees planted, as a visual reminder to all customers and potential customers.
