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With 2023 on the horizon, we’re reflecting on what a year 2022 has been for the industry and the opportunities that lie ahead for 2023. From getting Consumer Duty ready to adapting to a challenging economic landscape, we’re catching up with Director of Motor Sales Operations, Chris Rowthorn. 



Lending volumes for MotoNovo have been very good, which has been reflected in the broader picture for used car finance in the UK. It has not been achieved without challenges, such as staying abreast of used car values and ensuring we have been ready to help people affected by the cost of living crisis. But overall a very satisfying year.



For us, it would be multiple award successes, which is encouraging with the Consumer Duty on the horizon. As an industry, I want to highlight recent FLA data that points to 45% finance penetration in the used car sector.

While new car finance penetration is twice as high, they are very different markets, not least in scale and age range terms. I believe that 50% penetration has to be the 2023 goal, and with other lending forms, notably personal loans, arguably more challenged by the cost of living crisis than HP and PCP, that 50% is achievable.



What's the biggest challenge the motor finance sector has faced?

Rising inflation and, with it, rising interest rates. The industry has had to adapt rapidly to a changing environment and ensure that customers' borrowing is affordable.



How has the motor finance industry responded to the new customer duty?

Very positively. There has been an enormous investment in time and money to contribute to the debate and prepare for the October implementation plan deadline and now for next year's launch. The Consumer Duty presents an opportunity for dealer finance to combine what is often an omnichannel financing experience and take even better care of customers, which can help the sector grow.



How has the transition to EVs progressed over the last year?

SMMT tells us that in Q3, the used car market fell for the second consecutive quarter, declining by 12.2%. However, used battery electric vehicles rose 44.1%, and hybrid electric vehicle sales were up 2.5%. Plug-in hybrid sales, however, fell -5.8%. All good, but we must recognise that the increase was from a low base, especially for BEVs.

Into Q4 and CAP HPI data highlights that the volume of all EV types into the used wholesale market has trebled compared to 2021. The influx of used EVs with their typically higher price is having an impact on activity. From an auction days perspective, EVs average 20 days compared to 10 for ICE vehicles. It is here that we can see the cost of living impact. EV values have come under pressure, and recent data suggests that EVs lead the most significant month-on-month falls in vehicle values.

The average auction price for an EV up to 3 years old is £12K higher than a petrol car. In the 3-5 category, it is £15.3K higher. With our findandfundmycar.com data pointing to a hotspot monthly payment range of £200 - £250 PCM, EVs are proving expensive, even if, over time, the running costs are likely to be lower.

Right now, range and arguably charger availability remain consumer concerns; add to that the price premium being charged for EVs, and in the prevailing market, the increased supply is searching for more than 'early used EV adopter' demand.



How has the motor finance industry coped with the huge amounts of economic and political uncertainty over the last year?

With enormous agility. Businesses such as MotoNovo have embraced digitisation, and an increasing fintech capability has ensured flexibility built in, not least in automating many processes. This has enabled us to free up our human capital to focus on customers affected by the economic upheaval.



I see inflation reducing and anticipate further opportunities in the year ahead. While the SMMT expects growth in the new car sector, we suspect this is likely to be driven primarily by business users opting to switch to EVs with their associated business-user tax benefits. On a broader basis, we anticipate that many consumers will choose to defer expensive purchases, such as new cars and choose the used car option instead.


Consumer Duty is an opportunity to take even better care of consumers. This can help sustain used car finance's upward trajectory from the current 45% penetration reported by the FLA. 50% finance penetration has to be the goal for all retailers.



How ready is the industry for the new customer duty?

At MotoNovo, our planning for the Consumer Duty is well on track, and we continue to play a prominent role in encouraging our extensive dealer network to ensure that they are ready and, crucially, in championing the opportunity it presents to delight their customers with their approach to finance.



What needs to be done to aid the transition to EVs in the UK?

Enhance the charging infrastructure, notably in high-speed chargers and increase education to ensure consumers understand the benefits of an EV and address the challenges.



What challenges can the industry expect to face?

While we must be prepared for anything, the most apparent challenges are inflation and the forecast economic downturn.



What do motor finance businesses need to do to thrive over the next year?

Stay agile, seek new collaboration opportunities and focus on creating value for customers.

With 2023 on the horizon, Director of Motor Sales Operations, Chris Rowthorn, is reflecting on what a year 2022 has been, and what we can expect for 2023. 

2022 in review and the outlook for 2023

2022 has certainly been one to remember and we’re proud to have been recognised industry wide, taking home a number of award wins. Our success can be put down to the hard work of our teams who are dedicated to putting customers and dealers at the heart of our business.

From introducing new strategies to improve the customer journey to supporting our dealer partners through FCA updates, here’s a snapshot of our year so far:

Customer Service Excellence Award at the Car Finance Awards for offering an industry-leading level of service to customers and always going the extra mile in treating customers fairly.

Special Recognition for Diversity & Inclusion at the Credit Awards for championing D&I across the industry and taking steps to celebrate it.

Gold Customer Engagement Award at the Welsh Contact Centre Awards for demonstrating innovative practice in improving the customer experience.

Highly Commended for The European Auto Finance Award at the Asset Finance Connect Summer Awards for being market leading in innovation, always striving for improvements and delivering a good customer experience.

Highly Commended for Finance Provider of the Year (Prime) at the Car Dealer Power Awards based on dealer feedback.

Not only have we been recognised as a business, but our colleagues too. Championing the work of women across the financial services industry, the Women in Credit Awards empower and support the work of inspirational female leaders. Shamaila Madeley, National Account Manager and Cathy Addicott, Customer Relationship Advisor were both recognised as winners in the Colleague of the Year and Lifetime Achievement Award categories.

Continuing with the inspirational work, Lisa Minty, Account Manager; Laura Griffin, Regional Manager and Claire Fussey, Senior Retention Manager all took awards home at the Inspiring Automotive Women Awards! Celebrating the unsung heroes of the automotive industry, the awards are unique as anyone can nominate a woman from the industry who they believe is making a real difference, regardless of role!

We’re proud of all our winners for not only their impact at MotoNovo Finance, but for their contribution to the industry and for playing their part in inspiring future female leaders.

These wins demonstrate our commitment to always going above and beyond for our customers and dealer partners, introducing new products, initiatives and digital tools to provide the best service. 2023, we're ready for you!

Supporting our dealer partners through changing FCA regulations and introducing new initiatives to improve the customer experience, we're reflecting on a successful year.

Our 2022 award wins

£40m lent to dealers for stock funding and growing rapidly

Four extra working days a year created for dealers in time saved

And now Supplier Direct Funding (SDF) is creating even more time for dealers thanks to a collaboration with Click Dealer

"Based upon my regular dialogues with dealers since the end of lockdown, one thing has dominated the daily lives of many of them; finding enough time in the day to source stock. Our Supplier Direct Funding stock funding innovation is doing just that – and now we have added some additional dimensions." Chris Rowthorn, Director of Motor Sales Operations at MotoNovo Finance.

Supplier Direct Funding demonstrably takes time, cost and friction out of used car stocking for dealers. Based upon just 15 cars stocked per month, a detailed analysis of the process shows that dealers can save four days a year, time they can spend buying more stock.

Adding to the attraction of SDF,  in December, MotoNovo is waiving all dealer administration fees for uploading stock onto their SDF plan. On a sustained basis, further time savings for dealers using Click Dealer's DMS are available.

Now, through another smart integration between their platforms, dealers' stock purchased through SDF appears on the dealer's ClickDMS with all vehicle details and stocking information. Essentially, a dealer hits the button to buy a car through one of the ever-increasing remarketing channels through which SDF is available. The vehicle is immediately ‘on stock’, and now, dealers using the ClickDMS will benefit from the vehicle being automatically loaded onto the platform without any human intervention.

Gerry Moxham, the brilliantly named Chief Visionary Officer at Click Dealer, reflects;

"This is one of those elegantly simple upgrades that delivers a repeatable benefit that adds to the speed, convenience and time saving of the end-to-end SDF experience. It is also a great example of collaboration that benefits all parties.”

Time saved – with stock details now added automatically to the dealer's stock funding plan, the need to manually upload vehicle details and 'pay & reclaim' is removed

Convenience – automatic stock loading lightens the audit requirements and streamlines the process considerably.

Now, with the Click Dealer link, the dealer's newly purchased stock appears on their DMS immediately

Press release issued by MotoNovo Finance, December 2022

Helping dealers save on time, money and convenience, we've partnered with Click Dealer. Find out what this means here. 

News - December 2022

2022 in review and the outlook for 2023

Our 2022 award wins

MotoNovo teams up with Click Dealer to save dealers time and money

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