Hodge acquires Blue Motor Finance, safeguarding jobs and customer continuity

Hodge, the Cardiff-based specialist bank, has acquired the business and the majority of the assets of Blue Motor Finance through a pre-pack administration, safeguarding 168 jobs and ensuring continued support for the company’s dealer and broker network.

Blue Motor Finance provides used car finance through dealerships and broker partners, including lending for customers who may be unable to access mainstream finance.

The acquisition follows the announcement by the Financial Conduct Authority on 30 July 2026 that Blue Motor Finance Limited had entered administration after operating at a loss for a number of years and facing significant compensation liabilities it was unable to meet.

Following the transaction, new business will be written by Hodge MF Limited. Dealers have been advised to continue working through their existing contacts and processes during the transition.

More than 100,000 customers with existing finance agreements have been told there will be no immediate changes to the service they receive and that no action is required. The Blue Motor Finance brand will be phased out over a transitional period that Hodge expects to last around six months.

Continuity for dealers and customers

Simon Edel, Alan Hudson and Richard Barker of EY Parthenon were appointed joint administrators of Blue Motor Finance Limited on 30 July, with the sale completing shortly afterwards.

The transaction transferred Blue Motor Finance’s origination and servicing platform, operations and employees to Hodge MF Limited.

New finance agreements will now be originated by Hodge MF Limited, while existing customer agreements will remain with Blue Motor Finance Limited in administration and continue to be serviced by Hodge MF on its behalf. Existing direct debit and payment arrangements will continue as normal.

Hodge said it has worked with Blue Motor Finance since 2023 through a forward-flow funding agreement, enabling it to complete the transaction quickly.

Richard Saulet, Chief Executive of Hodge, said:

“This transaction provides a pragmatic and responsible solution to a complex situation. By acquiring the business through the pre-pack process, we have been able to secure continuity of operations, protect jobs and ensure that customers continue to be supported.

“Importantly, this structure also maximises the value available to be distributed to redress claimants, delivering a better outcome than would otherwise have been possible.

“Our immediate focus is on ensuring a smooth transition and maintaining high standards of service for customers and partners, while providing stability for employees. Blue Motor Finance – operated by Hodge MF – remains open for new business, and we look forward to continuing to support its dealer and broker network. We are committed to working constructively with all stakeholders as the business moves forward under new ownership.”

Existing liabilities remain with Blue Motor Finance

Hodge confirmed that existing liabilities belonging to Blue Motor Finance, including any liabilities arising from the motor finance redress scheme, have not transferred to Hodge MF Limited. These will instead be managed by the joint administrators as claims against the company in administration.

The company said the pre-pack sale is expected to increase the value available to creditors, including potential motor finance redress claimants. Without the transaction, Blue Motor Finance would have entered liquidation, which Hodge said would have resulted in significantly lower returns for claimants.

Simon Edel, Partner at EY Parthenon, said:

“We are pleased to have completed the sale of the Blue Motor Finance business, which will protect all employee jobs, ensure continuity for more than 100,000 existing customers who have existing loans with the company and will maximise the return to unsecured creditors including redress creditors.

“The business will continue to operate as a going concern under new ownership, providing used car finance to consumers across the credit spectrum, including many who are unable to access mainstream lending options, with no expected change in service for existing customers.”