Hodge acquires Blue Motor Finance out of administration, saving 168 jobs
What's the deal? Cardiff-based specialist bank HodgeDealroom has a profile for this one. Try Dealroom → has acquired the business and most of the assets of Blue Motor Finance through a pre-pack administration, safeguarding 168 jobs. New lending will now be written by Hodge MF Limited.
What does Blue Motor Finance do? It provides used car finance through dealerships and broker partners, including for customers who cannot access mainstream finance. More than 100,000 customers hold existing agreements.
Why now? The Financial Conduct AuthorityDealroom has a profile for this one. Try Dealroom → announced on 30 July 2026 that Blue Motor Finance had entered administration, after years of operating at a loss and facing compensation liabilities it could not meet. Joint administrators from EY-ParthenonDealroom has a profile for this one. Try Dealroom → were appointed the same day, with the sale completing shortly afterwards.
What changes for customers? Existing customers have been told there are no immediate changes and no action is required. Direct debits and payments continue as normal, while the Blue Motor Finance brand is phased out over roughly six months.
Hodge had worked with Blue Motor Finance since 2023 through a forward-flow funding agreement, which it said allowed it to complete the deal quickly.
What about the liabilities? Existing liabilities — including any arising from the motor finance redress scheme — do not transfer to Hodge MF. They remain with Blue Motor Finance in administration, managed as claims by the joint administrators.
Why it matters for creditors: Hodge said the pre-pack sale should increase the value available to creditors, including potential redress claimants. Without it, the company said liquidation would have delivered significantly lower returns for claimants.
"This transaction provides a pragmatic and responsible solution to a complex situation," said Richard Saulet, chief executive of Hodge, adding that the structure "maximises the value available to be distributed to redress claimants."
The signal: The deal reflects mounting pressure on UK motor finance lenders from the sector's redress scheme, which has pushed loss-making players towards administration. Hodge's rescue keeps origination and servicing running while ring-fencing the compensation risk with the failed entity.
Read more: Fintech Wales
Image credit: William Hook
