How to increase your finance pen by 40%
Increasing finance penetration by 40% might sound like it’s too good to be true, especially in the current climate, but we’ve found that it’s entirely possible with the right proposition.
At MotoNovo, we’ve been working to fundamentally change the dealer finance model. MotoRate allows dealers to offer an impressive headline rate and an opportunity to inform customers that the final pricing is based on their personal circumstances, with no dealer discretion.
Our CEO Mark Standish surmised: “As we emerge into the ‘new-normal’, we have an opportunity to redefine the dealer model and finance can be an integral part of this change. Where new car finance penetration is running at over 90%, led by low headline rates; the lack of transparency on used finance sees penetration levels often below 20%.
“At a stroke, we can change things; driving up finance penetration with highly competitive rates; embracing FCA requirements; giving customers control over their finance journey and removing some of the negative perceptions of dealer finance promoted in the media. The feedback from the pilot of over 100 dealers could hardly have been more encouraging.”
We’ve been running an extensive pre-lock down pilot with a selection of our dealer partners. They have helped us refine the product, showing that business performance and finance penetration can increase with MotoRate.
- An average increase in business volumes circa 40% year on year
- Dealers reporting finance penetration increase of 40%
- Dealers seeing 100% increase in New Business performance
- Business volumes increased in December, much more for dealers on the pilot.
“I have definitely noticed an increase in our finance penetration, and accepted to written finance has increased way beyond our initial hopes with this product. Our bank conversion rates have also increased, and our customers are benefiting from lower competitive rates. We cannot fault this product, and hope that this is the way forward.” Pilot dealer
Increasing finance performance isn’t the only benefit to MotoRate, it has been designed to work well for the customer, dealer and lender in equal measure. Read more about the dealer and customer benefits here.
Are you interested?
Click here to download your full MotoRate guide, or get in touch with your local Account Manager using the box below to learn more.
