Following the UK Court of Appeal judgment on Friday 25th October, we took the decision to pause new business from Monday 28th October while we worked to mitigate the legal implications to protect our dealers, brokers and customers.

We have now made the necessary adjustments to ensure the business can operate within the legal requirements set out in the judgment and are now open for new business in MotoNovo.

We do understand the pause to new business created challenges for you, and we thank you for your patience and support while we have been navigating the impact of the judgment. Dealer partners are encouraged to reach out to their account manager with any questions they may have during this time. Find out more here. 

Important update: We're back open for business

Interested in becoming a MotoNovo dealer? Get in touch today.

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Change is inevitable and brings with it progress and advancement. There can be no doubt that the pace of change in motor retailing, as in many business areas, is continuing to move forward. In this post, we showcase five digital innovations that we’re likely to see more of in the months and years ahead.

Self-service is on the increase, providing motor dealerships and their customers with more efficient ways of transacting car purchases. We've long used self-service technology in the showroom to finalise documentation and in our sign-up and post-sale journeys, to enable customers to self-manage their accounts online securely 24x7.

Other digital options are also emerging with customers able to manage their car servicing needs online and even, in the case of EVs, download software updates to ensure their car’s technology is up to date..

Biometric authentication, commonly using facial or fingerprint recognition, is gaining momentum in car financing. It enhances the customer journey and tackles identity fraud.

As part of the e-sign process for their car finance, customers may be asked to complete a biometric identity and verification check; our MotoClick service has adopted this approach. Customers are asked to take a ‘selfie’ on their mobile device to initiate a secure facial recognition process. With identity theft leading to increasing car fraud, biometrics is a powerful tool that protects buyers and lenders.

In another imaginative use of biometrics, last year, Mercedes-Benz joined up with Mastercard to introduce embedded in-car payments at the point of sale. Customers in Germany can use a fingerprint sensor in their cars to make convenient and secure digital payments at more than 3,600 service stations in the country.

The use of artificial intelligence, or AI, is set to accelerate in showrooms. One area of interest right now is Conversational AI, which can enable dealerships to engage with potential customers 24x7 in highly personalised conversations across various channels, including web chat, SMS, email, WhatsApp, and even voice interactions.

Machine Learning, which is part of the AI revolution, is starting to predict vehicle prices accurately. By analysing vast amounts of data, algorithms can forecast car prices based on factors like model, year, mileage, and more. This technology helps car buyers and sellers make informed decisions, saving time and money. In a similar fashion, machine learning is being used to identify when customers may be back in the market for their next car.

Virtual showrooms and augmented reality (AR) experiences have the potential to reimagine the way some buyers discover their next car by enabling them to interact with vehicles. Using virtual reality tools, dealerships can showcase their stock dynamically and engagingly, attracting tech-savvy consumers who value innovation. Looking ahead, such technology could be adapted to promote car finance, enabling customers to discover finance highly transparently.

Take a look as we dive into the latest technology advancements across the industry. 

Top 5 technology advancements in motor retailing

The Mayor of London's scrappage scheme that provided financial assistance to help eligible London residents, businesses and charities scrap, donate, or retrofit vehicles that did not meet the Ultra Low Emission Zone (ULEZ) emissions standards closed on 8th September 2024. 

The new government is set to reintroduce the ban on the sale of new internal combustion engine (ICE) vehicles in 2030 after its predecessor delayed the plan to 2035. The policy change raises the question of whether financial assistance is needed to encourage individuals to switch to a battery electric vehicle (BEV), whether new or used. According to research published earlier this year by MotoNovo, many car buyers would welcome such a policy. 

The research, undertaken independently by Opinium Research, involved 2,000 people and revealed that 81% of people planning to buy a used car would not consider switching to a BEV because of the high purchase cost. However, a government grant or incentive would encourage half (51%) of potential buyers to make the move.  

Today, the availability of plug-in grant support from the government is limited to; 

They are available to people and businesses buying new models only, with the grant process managed by the retailer enabling them to include it as a discount to the purchase price. 

The only other support available to acquire a BEV is through salary sacrifice schemes, which focus on new cars and which are not available to all individuals. 

Regarding used BEV purchase support, the only option we know for used EVs is available to anyone living in Scotland (they must have lived at their address for at least six years) and who meets the eligibility criteria. Loan availability is limited to BEVs (no other EVs, such as used hybrid EVs, are included), and the vehicle must be supplied by a recognised car dealer. 

This funding offers interest-free loans, funded by Transport Scotland and repayable over up to six years, to help spread the cost of a used BEV, including cars, vans, motorcycles, or mopeds. In the year to March 31st 2024, 1,162 loans were granted. 

Encouraging everyone to buy a BEV, whether it is new or used, can help accelerate the road to net zero. MotoNovo wants to reiterate its call to the new government to offer an incentive or grant to encourage more people to switch to a new or used BEV. It cannot be right that government support is only available to a section of the population and only for new vehicles. 

As London closes its ULEZ scrappage scheme, we're exploring whether incentives to buy BEVs work and what plans the government have in store.

As London closes its ULEZ scrappage scheme, is there a case for a national programme?

Fraud against businesses is on the rise. Unlike the protection afforded to consumers, small businesses and limited companies need to meet certain eligibility criteria to claim compensation with the Financial Services Compensation Scheme (FSCS), with eligibility on a case-by-case basis that varies for different types of claims.

Due diligence, internet controls and risk management are crucial to avoid being scammed, and it all starts by appreciating that fraud can come from anywhere, including:

Third parties, unconnected to the business

If it sounds too good to be true, it probably is. Thoroughly question all unusual deals, opportunities, documents, and transactions, and encourage all your staff to embrace the same ethos. If you are in doubt, check it out first.

Ensure internal controls, policies, and procedures are in place and adhered to for anything that involves a financial transaction, such as the sale and purchase of all vehicles and stock and the transfer of any legal documentation, for example, V5s. This includes procedures for authorising, recording, and reconciling financial transactions and safeguarding the business’ assets.

This should be a core part of recruiting a new team member. UK employment background checks usually consist of some or all of the following, most of which are regulated by law: criminal record checks, right to work checks, DVLA checks (for employees driving on company time, and health checks (used exclusively for cases where it is a legal requirement. For example, eye tests for commercial vehicle drivers). It is also possible to verify education and employment background and social media screening (used by some employers to gain insight into a candidate’s values and attitude).

Conduct due diligence using a risk-based approach, such as checking the customer or supplier details you have on file and by using online searches. Never pay an invoice from someone you have not verified.

Watch your bank account every day to understand how money leaves your business, or enable your banking apps to notify you of money going in and out of your accounts, including:

Who has the authority to make those payments (have at least two people handling any payments, if possible)?

Fraudulent invoices for goods and services are widespread; it might look real, but is it?  Fraudulent invoices, often for well-known publications and scams related to advertising in charitable publications, are sadly all too common. If it doesn’t look or sound right, don’t pay; check it instead. Also, if a supplier changes their bank details, always verify this change is correct.

Care must be taken to ensure that you have good title to all stock and that the check is verified (if it sounds too good to be true, be suspicious). Similarly, you must know your legal responsibilities to customers in areas such as distance selling. A dealer won a recent case, with the judgement referring to the customer as ‘at best misleading and at worst untruthful’.

Ensure you have a cyber security policy, you can see our other post on this subject here.

9. Embrace UK Finance’s ‘Take five to stop fraud'

Take Five is an initiative led by UK Finance. It aims to encourage people to stop and take time to think before they act. Always remember these five rules:

Never disclose security details, such as your PIN or full banking password.

Don’t assume an email, text, or phone call is authentic.

Don’t be rushed – a genuine organisation won’t mind waiting.

Listen to your instincts – you know if something doesn’t feel right.

Stay in control – don’t panic and make a decision you’ll regret.

Action Fraud is the UK’s national fraud and cybercrime reporting centre. You can also get information about fraud and financially motivated internet crime.

You can also report fraud to the police if you know the suspect or they’re still in the area. Call 101 to speak to an operator.

Fraud is on the rise, so explore our top ten tips for avoiding it. 

Business fraud and how to avoid it: 10 top tips

We often hear from our dealer and broker partners that they want to set up their own diversity and inclusion (D&I) network, but they don’t know where to start, or that it seems like a complicated process.

At MotoNovo, we have learned from GROW (Generating Real Opportunities for Women), our internal Women’s Network, and from a number of other D&I initiatives that there are a number of things to consider when setting up an internal network. To help dealers on their D&I journeys, we’ve put together a whistle-stop tour of how they can get started.

Before we outline our learnings, we need to stress that there is no ‘right’ way to promote diversity and inclusion in a business and that the two most crucial factors are:

Leadership support and engagement in the programme.

A passion for creating a positive impact and a willingness to give it a go.

It's also important to stress that any impact an in-house network can make, no matter how small, is an achievement – every inch of progress is a success, and over time, these all add up.

Knowing where to get started can be tricky, but here’s the five-step process that helps us:

First of all, agree on the network's vision. What do you want to achieve, who is it intended to support, and how do you imagine it looking when it’s successfully underway?

For example, the Automotive 30 organisation, which aims to achieve a better gender balance within the automotive industry, has a vision to fill at least 30% of key leadership positions in the member organisations with women by 2030 through a “30 by 30” strategy.

Once you have the vision for your network, set three to four ambitious, SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives for your network actions alongside them to show how they will be met in practice.

These could include a greater diversity mix in your business or its leadership, the development of the business’ recruitment, training and career processes and policies, or ongoing involvement with other local networks, such as the Chamber of Commerce or FSB, to help gain fresh insights, for example.

Involve a variety of people passionate about improving diversity and inclusion. After all, this is usually done alongside a day-to-day job, so you need people with motivation. These should include people inside your business but could include external people whose skills can add to the group or as guest speakers/contributors.

A transparent decision-making process is critical. Hopefully, ideas, inspiration and discussion will flourish, but it is essential that these lead to action and outcomes. Experience says this is about establishing controls with roles, responsibilities and accountability.

You could nominate a chairperson who has the final say after hearing from the various group members, or you could put things to a vote. However you do it, ensure it’s clear and communicated to the network members from the outset.

Earlier, we highlighted the importance of business leadership support and engagement in the programme. However, this does not mean that the network should be ‘top-down’ led, far from it. From our experience, being colleague-led while having a business leader as a sponsor is a valuable combination with the business leader supporting the chairperson, removing blockers, and managing budget requests.

If creating an in-house D&I network is not feasible, join GROW and be part of a network designed to support D&I across the automotive retailing sector; the team can be contacted at GROW@motonovofinance.com.

Continuing to drive positive change across the industry, take a look at how you can set up your own D&I Network.

News - September 2024

Top 5 technology advancements in motor retailing

As London closes its ULEZ scrappage scheme, is there a case for a national programme?

Business fraud and how to avoid it: 10 top tips

Creating a D&I Network: tips from our GROW Network

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