A pricing model that’s tailored to the customer’s personal credit score, but also helps to increase finance sales for dealers? It might sound too good to be true, but we’ve been perfecting the innovative risk-based pricing model for years and we can’t help but shout about its progress.
Launching in July 2020, we quickly had 1,000 adopting dealers and now we’re pleased to say that over 2,500 dealers are benefiting from MotoRate. Here’s what you’ve missed:
- Increasing finance sales
MotoRate is helping dealers increase average business volumes by 40% year on year, taking the average growth in finance sales up by 40%*. That’s a huge 73% increase in new business from MotoRate dealers. In a year that’s seen businesses and dealerships closed for months at a time or adapting to new ways of selling, this could be a game changer for many.
- Supporting on online journey
Digital engagement with customers has never been more important and a risk-based pricing approach allows dealers to advertise low rates, giving them a competitive edge over other direct lenders.
- Putting you in control (yes, we’re talking both customers and dealers here!)
Our focus is on empowering customers and dealers through clever digital technology. MotoRate customers can self-asses their credit score and use online Self-Serve and Decision in Principle tools to take out their finance agreement. On the flip side, by taking away the ambiguity of having to deal with multiple lenders and different pricing mechanisms that come with it, dealers can enjoy a quick, easy and consistent approval process.
- Leading regulatory change
As an essential change for dealerships, on 28 January, the Financial Conduct Authority (FCA) placed a ban on discretionary commission models, but not before MotoNovo saw the opportunity in risk-based pricing. MotoRate aims to be transparent, fair and not misleading; setting a benchmark for the rest of the industry to follow and ensuring a fair outcome for customers.
- Enhancing the customer journey
Right at the core of MotoRate is the customer journey, with customers recognising that MotoRate is personal, quick and hassle free. From online research to point of sale, MotoRate is helping dealerships deliver a better service for customers. Here’s how:
Our dealers believe in MotoRate too:
“The transparency of the advertised rate at a lower APR based on personal circumstances is driving more enquiries and ultimately sales” Chris Nichol Motors
“We are now engaging with a wider audience as the lower APR’s are akin to other lending sources” KCS of Surrey
Have we peaked your interest?
Click here for more info, or get in touch with your local Account Manager using the box below.