Following MotoNovo’s announcement that is was lifting its lending restrictions, the business has seen a surge in proposal and business activity. In the period May 11-15th, finance business activity returned to around half of pre-lock-down volumes. This heartening level of finance activity offers a positive sign to dealers seeking to establish Click & Collect services in England following the recent Government advice that this option is available to them.
“The first week of activity following our move to lift lending restrictions has delivered an encouraging impact; especially since the lock-down was very largely in place and that showrooms were and must remain closed,” reflects MotoNovo CEO, Mark Standish.
MotoNovo’s business activity May 11-15th revealed:
- A 71% increase in proposals week on week
- A 79% increase in payouts week on week
More telling is an assessment of this latest performance, achieved in a lock-down period compared with the comparable pre-lock-down March data:
- Proposals were 65% of normal pre-lock-down period in March
- Payouts were 60% of normal pre-lock-down period in March
Standish notes; “This data provides a promising indication for dealers in England looking to develop a click & collect service; it also points to the importance of finance. From experience in previous challenging economic times, we expect to see strong demand for dealer finance because access to unsecured lending is often more restricted than secured HP/PCP finance. The increase in customer finance activity at our findandfundmycar.com over recent weeks is evidence of this trend. Leading on finance availability and affordability will be important to dealers looking to create customer interest.”
In providing encouragement to dealers, Standish is quick to point out the critical need for all dealers to undertake mandatory risk assessment requirements, completing all necessary steps to protect employees and customers before opening a click and collect service, as he concludes;
“While I am heartened by these early results, we must recognise that we are not going back to business as normal. It is time for dealers to reassess their business models to get leaner and closer to their customers. At the top of this change list right now must be the required risk assessment actions to keep people safe and create reassurance and buying confidence for customers and staff. To assist the dealer community, we have developed a risk assessment toolkit that signposts dealers to resources that can help them to develop an appropriate health and safety approach.”
Press release issued by MotoNovo Finance, May 2020