MotoNovo has launched a new approach to finance that has seen a large pilot group of over 100 dealers increase their finance penetration by 40%. I hope this has caught your attention. The new MotoRate risk-based pricing model is customer, dealer and regulatory friendly. At its heart is a simple customer message:
The ability to provide the right rate for the customer and their circumstances
MotoRate helps dealers to enhance their proposition, especially online. It is transparent, fair, accessible and relevant to customers’ needs with access to highly competitive APRs. It also helps dealers to embrace the trajectory of change outlined by the Financial Conduct Authority (FCA), which is expected to be finalised in the coming months. The pre-lock-down pilot results demonstrated even more dealer gains:
- An increase in the sale of added-value products
- Increased chassis profitability
- Increased stock-turn
- Very positive responses to the new level of customer transparency delivered.
The initial bounce-back signals that we are hearing are encouraging, but should not detract from the need for change in the ‘new-normal’, increasingly digital, retail landscape.
We are at a watershed moment, used car retailing and financing can change proactively to become more digital, accessible, controllable and transparent to customers, or risk the accelerating disruption that is seeing digital retailers decimating High Streets. Used cars retailing is not immune from the trend to online.
MotoRate can be part of reinventing used car retailing and it is very relevant to the current market as recent evidence indicates:
- Personal loans have become more expensive and declines are rising according to research published by Moneyfacts on June 10th
- Dealers are expecting new buying behaviours from consumers“42% of dealers believe consumers will be more cautious towards finance because of COVID-19 in the short to long-term” – Manheim June 10th
Customers may well be cautious, but the majority need to borrow from one source or another to buy their car. The customer-centric nature of MotoRate can link; finance, car and dealer in a seamless package that is easy, convenient and accessible supported by a competitive APR and the higher acceptance levels commonly associated with secured finance. It is an elegant step to help dealers to reinvent their offer and become more vital to the evolving way people find and finance their next car.