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Dealer finance, as with every other area of financial services in the UK, has gone live with the FCA's Consumer Duty. MotoNovo Finance's Commercial Sales Director, Debbie McKay, is keen to stress that this is just the start of the race, not the end noting;

"The F&I community has been working diligently for many months and, in some cases, years to get ready for the launch of the Consumer Duty. Now we are there; arguably, the harder work begins; all firms, including dealers and broker firms, must be able to evidence that customers are now truly at the heart of their businesses. As the regulator has said consistently, it is a significant shift in our expectations of firms."

The FCA ensured fresh focus was placed on motor finance providers' CEOs on March 1st. The regulator reminded firms of the implementation timeline, key elements of the Duty, how it applied to motor finance firms and their expectations for embedding the Duty. It is this embedding of the Duty Debbie is keen to stress, reflecting;

"Now is the time for all of us to step back and challenge ourselves. Have we made the substantive requirements expected, and what plans have we got for continuous improvement and monitoring?"

Not only has the regulator been explicit in their expectations for positive change from all firms, regardless of size, acting ‘swiftly and assertively where it finds evidence of harm or risk of harm to consumers,’ it is a message that will result in increased media attention and scrutiny following the Consumer Duty launch. It is something that has already seen momentum building. On July 24th, the Daily Mirror published a story about the launch under the heading, “New rules to stop customers being ripped off coming next week.” 

In seeking to embed the Consumer Duty, Debbie encourages dealer leaders to ask themselves five questions:

What has changed in how you promote, sell and provide F&I services to improve customer outcomes?

What have you done to identify and support vulnerable customers?

What steps have been taken to ensure affordability?

How have you placed customer needs at the heart of your business?

Concluding, "It is not an exhaustive checklist, but I hope it ensures that delivering on the Consumer Duty is a continuing priority because I do not doubt that the outcomes expected will remain a moving target."


Press release issued by MotoNovo Finance, July 2023


The FCA's Consumer Duty is finally live, but hear why Debbie McKay, Commercial Director of Motor Sales, is keen to stress that is just the beginning. 

The FCA's Consumer Duty is live - now the action planned must start

MotoNovo Finance (MNF) has announced the expansion of its Senior Leadership Team with three senior external appointments – Leanne Christmas who joins as Conduct and Business Risk Director; Alice Sweet who becomes Product and Proposition Director; and James Gearey who has been appointed as Interim Commercial and Performance Director.

The new additions will report to Managing Director, Richard Jones, as he continues to reshape the business he joined in February. They will each play a crucial role in developing and delivering MNF’s new strategy and leading the business into the future. The three roles have all been newly created and will complement Richard’s existing Senior Leadership Team.

Leanne Christmas who has been appointed as Conduct and Business Risk Director Motor, joins the business from BMW Financial Services and Alphabet, where she has spent seven years as Chief Compliance Officer, and more recently, she was responsible for the Controlling and Treasury function. Leanne trained at Deloitte as a chartered accountant and previously held several global risk and governance roles within the Barclays Bank group.

 Alice Sweet's appointment as Product and Proposition Director sees her join MotoNovo following a career that has seen her hold senior roles in Lloyds Banking Group, where she worked across Retail and Business Banking, and most recently, the Royal London Group, where she was responsible for shaping the business strategy and building the proposition roadmap for Royal London's Consumer Division. Most recently, she led Royal London's UK Life Insurance business.

James Gearey joins as Interim Commercial and Performance Director. His initial focus will be on developing the business strategy. James brings an extensive track record that includes senior leadership roles at Siemens Financial Services and Aviva across insurance, commercial and asset-based finance. He joins MotoNovo from Covea Insurance, where he was Managing Director for Personal Lines and Protection.

Commenting on the appointments, Richard said:

"I am delighted to welcome three new members to my Executive team, who bring considerable capability and expertise to help drive our business forward. 

“These are exciting times for MotoNovo Finance as we embrace an era of unprecedented change in the motor industry and I am confident we now have the right team in place to help our business embrace the challenges and opportunities that present themselves.”

Press release issued by MotoNovo Finance, July 2023

Playing a crucial role in developing MotoNovo's new strategy and leading the business into the future, Managing Director, Richard Jones, is expanding his Senior Leadership Team.

MotoNovo strengthens Senior Leadership Team with three senior appointments

Range anxiety has often been displaced by charger access anxiety for the UK’s growing number of EV owners and would-be owners. As well as the rapid increase in public chargers we can now see, the UK Government has acted to enforce greater reliability from the existing infrastructure.

New regulations have been announced mandating that all of the UK's public charge points must have a 99% average reliability record. Additionally, the Public Charge Point Regulations 2023 must have clearer pricing information and easier payment systems in place.

New legislation and the introduction of an open data source will look to transform the mapping of public charge points. The net result is that it should be easier for EV owners to plan their journeys and remove range anxiety.

Under the new regulations, EV charge point operators need to show the devices on their networks have a reliability average of almost 100%. If they fail to deliver this, then operators could face fines from £10,000 to £250,000.

This latest move adds to an increase of 33% in the number of installed public device, since April 2022, with the number of rapid charging devices increasing by 39%.

In short, it's good news for anyone using an EV.

Chris Rowthorn, Director of Motor Sales Operations

New regulations have been announced mandating that all of the UK's public charge points must have a 99% average reliability record. Find out more from Director of Motor Sales Operations, Chris Rowthorn. 

Government announces move to get 99% reliability for public EV chargers

At the end of April, the UK government launched a two-month consultation on its plans for a Zero Emissions Vehicle (ZEV) Mandate for passenger cars and light commercial vehicles. In short, manufacturers will be obliged to sell an increasing proportion of electric vehicles before the 2030 ban on conventional petrol and diesel, due to start next year.

While zero-emission vehicle sales in the UK have continued to increase, reaching 15% of new car sales in the 12 months up through June 2022, according to SMMT data, transport emissions remain a concern.

According to the government’s consultation paper, the transport sector produces the most significant share of UK domestic greenhouse gases (GHGs). Cars and vans alone accounted for 18% of the UK’s total domestic GHG emissions in 2021. The government sees zero-emission vehicles (ZEVs) as the only way to decarbonise road transport in line with the UK’s net zero legislation.

The proposed minimum ZEV target trajectory for new cars sold begins at 22% in 2024, increasing to 80% in 2030 and reaching 100% in 2035. The proposed minimum ZEV target trajectory for new vans sold begins at 10% in 2024 and reaches 70% in 2030, on the way to 100% in 2035. It will sit alongside the existing average fleet emission targets manufacturers must hit.

To qualify as a ZEV, it is proposed that a vehicle must emit no CO2 or any other targeted greenhouse gases at the exhaust, have a minimum range of 120 miles according to the WLTP test standard, and meet specific minimum warranty requirements to ensure a consistent and predictable consumer experience.

Vehicle makers that fail to achieve these sales targets will be subject to fines, with a system of proposed flexibilities and credits.

The consultation also states that only true “zero carbon” technologies will be permitted post-2035, which could rule out synthetic e-fuels as an alternative to electrification or hydrogen.

While there are exceptions for smaller manufacturers and the potential for OEMs to ‘trade’ allowances as they gear up the availability of their ZEV parc, the trajectory is very evident. The government is proposing a payment of £15,000 per ‘excess activity’ for cars and £18,000 for vans. If they miss the target by 2000 vehicles, the fine would be £30 million. The zero-emission BEV market, already on an upward trajectory, is set to get a significant extra push from next year.

At the end of April, the government launched a two-month consultation on its plans for a Zero Emissions Vehicle (ZEV) Mandate for passenger cars and light commercial vehicles. Find out more. 

The UK's Zero Emissions Vehicle (ZEV) mandate

Research with 1,221 ‘in-market’ car buyers by What Car saw over half expressing a preference to buy direct from a manufacturer rather than a dealer. However, that number was slightly down on similar research undertaken by the publication in January 2022 found 57.5% of buyers wanted to transact via an agency model.

While the fixed price model – a key component of agency sales – was seen by people as more appealing than haggling and shopping around, there are question marks over whether this is always the reality. When it comes to signing on the dotted line for a new car, many car buyers and, indeed, the consumer media are so conditioned to getting a discount, helped by the many car aggregation purchase websites, that the fixed price proposition may not be that appealing.

A central perception of ‘going direct’ is that prices taken out of the distribution chain will mean lower prices. Having led the transition from franchised to agency in the UK, Mercedes-Benz has seen their average car prices increase by 43% since 2019, according to a report by Bloomberg. It is a rise that will have shocked many would-be buyers, and this was reflected in a mystery shopping exercise visiting Mercedes Benz agency ‘dealers’ by What Car. They reported that the fixed price model was seeing dealers reporting lost sales.

It's widely understood in the trade that emerging EV models are more expensive to manufacture than their petrol/diesel predecessors. However, consumer awareness of the higher production costs for EVs may be less ingrained. Trying to suggest that the higher production costs justify such a significant price hike when the belief is that distribution costs will be lower could be a challenging proposition.

Another learning from the Mercedes Benz experience is that their model range has been slimmed down to simplify ordering and production. The risk here is higher prices and lower specifications. Buyers may need to forego certain features or pay more for a higher trim level. Tailoring a car’s specification would mean a delay in delivery and the risk of further price rises if the production process is slow.

The net result is that at present, What Car concludes, the negatives of a switch to the agency model far outweigh the positives for buyers.

Chris Rowthorn, Director of Motor Sales Operations

Hear from Director of Motor Sales Operations, Chris Rowthorn, on why What Car's latest research favours the dealer experience. 

News - July 2023

The FCA's Consumer Duty is live - now the action planned must start

MotoNovo strengthens Senior Leadership Team with three senior appointments

Government announces move to get 99% reliability for public EV chargers

The UK's Zero Emissions Vehicle (ZEV) mandate

The shift to agency sales and car pricing

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