The £499.62 annual customer saving opportunity from MotoNovo
MotoNovo Finance’s exclusive Discount Shopping programme, available to all finance customers gives dealers an extra edge when it comes to helping customers to make a favourable buying decision; it can also be part of a dealers approach to ensuring every finance customer has a fair financing outcome as required by the Financial Conduct Authority (FCA).
Creating the type of fair customer outcome mandated by the FCA requires that dealers place customer needs at the heart of their business. To deliver on this, dealers must first understand their customers and what their needs are – both overall and at an individual customer level.
To place the potential benefits of MotoNovo Discount Shopping in context, we have established the overall picture, which dealers can use to illustrate the benefits to their customers on a one-to-one level.
The £499.62 saving referenced in our headline is calculated by taking total household spend activities identified by the Office for National Statistics (ONS) and applying a 3.5% discount across the total expenditure. The 3.5% has been consciously selected to provide a modest estimate based upon the discounts available from the major supermarkets included in the many retailers which are part of the Discount Shopping portfolio.
As an interesting way of using the data, the average monthly car repayment across the UK is £226.002 per month, so a saving of £499.62; equivalent to more than two months car finance repayments. At an individual level, the customer benefit could be tailored to their monthly finance arrangement to bring the potential savings to life.
Assessing the ONS data and the savings on offer at MotoNovo Discount Shopping, an annual saving of £500 is realistic and more is available if people are buying white goods or spend more on holidays and leisure. It can be easy to overlook such options, but highlighting the genuine potential savings is a great and easy way to demonstrate customer care and could be very useful for dealers and their customers.
By Karl Werner, Deputy CEO of MotoNovo Finance
