Launching HP Balloon - a Q&A with Luke Curtis
HP Balloon is our newest product in the MotoNovo Commercial offering, helping dealers to sell more commercial finance with products that suit their customers. In a market dominated by manufacturer campaigns or strong leasing offers, often used LCV’s do not look attractive from a monthly payment stand point.
With good qualification around change cycle, budget and usage, HP Balloon gives dealers the opportunity to reach more customers by producing a competitive low monthly quote on vehicles new to three years old. It will also help our dealers to demonstrate a duty of care towards customers by making sure they have the correct finance product for their needs.
We caught up with our very own Head of Commercial, Luke Curtis, for the low down on HP Balloon:
In just one line, can you sum up the HP Balloon product?
HP Balloon is the first residual value product for business customers buying a van, so quite simply it reduces the payments compared to a comparable standard HP.
How does HP Balloon support our commercial customers?
Cashflow is of the highest importance to business customers during the pandemic. This combines with the challenge of having vehicles with the best possible running costs, which include the cost of any potential Clean Air Zone charges. The product makes newer, cleaner, greener vehicles more affordable so is designed to support business customers and small fleet owners in today’s climate.
What are the unique selling points that dealers should be aware of?
I would say it’s about having choice, access to better and more sustainable vehicles while preserving cash-flow. Not to mention that the product is compatible with Fleet Funding so the benefit is enormous when spread across several vehicles.
How does HP Balloon support the current commercial market?
The market has been very robust across the summer and autumn as SMEs get back to work. Online shopping trends continue to fuel the courier trade and the green agenda adds a level of urgency around fleet upgrades. However, our current proposition leaves a lot of opportunity on the table and this is something we’d like to address for our dealer base.
The amount of LCV business that gets invoiced out to asset finance lenders and brokers is astounding. Often this is because of existing lender relationships and the ability to provide credit lines and structured products. Fleet Funding and HP Balloon give the dealer POS market the best chance of attracting these customers and, with the support of our retention programme, retaining them.
