Hodge Bank has acquired the business and most of the assets of Blue Motor Finance through a ‘pre-pack’ administration, protecting 168 jobs and maintaining funding for its dealer and broker network.
Blue Motor Finance provides used car loans through a network of dealerships and broker partners, including finance for customers who may be unable to access mainstream lending.
On 30 July 2026, the Financial Conduct Authority announced Blue Motor Finance Limited had been placed into administration after having run at a loss for a number of years and faced significant compensation liabilities it could not meet.
Blue Motor Finance will now write new business under Hodge MF Limited, with dealers told to continue working through their existing contacts and processes.
More than 100,000 customers with existing loans are also promised they will see no immediate change to their service and do not need to take any action. The Blue Motor Finance brand will however be discontinued following a transitional period, which Hodge said it expects to last six months.
Dealer lending continues
Simon Edel, Alan Hudson and Richard Barker of EY Parthenon were appointed joint administrators of Blue Motor Finance Limited on July 30, with the sale completed immediately soon after.
The transaction transferred Blue Motor Finance’s origination and servicing platform, operations and employees to Hodge MF Limited.
New loans will now be originated by Hodge MF, while existing customer agreements remain with Blue Motor Finance in administration and will be serviced by the new owner 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, placing the bank in a position to complete the transaction quickly.
Richard Saulet, chief executive of Hodge Bank, 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.”
Redress liabilities stay behind
Existing liabilities belonging to Blue Motor Finance, including any liabilities arising from the motor finance redress scheme, have not transferred to Hodge MF Limited. They will instead be dealt with by the joint administrators as claims against the company in administration.
Hodge said the pre-pack sale increased the value expected to be available to creditors, including potential motor finance redress claimants.
Without the transaction, Blue Motor Finance would have entered liquidation, which Hodge said would have produced a significantly lower return for claimants.
Edel, a 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.”
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