'Supplier Direct Funding' stock funding innovation launched

Taking time, cost and friction out of used car stocking through auctions is the aim that has been achieved by our new Supplier Direct Funding approach. As one of the UK’s largest suppliers of used vehicle stock funding, a significant number of dealers stand to benefit.

Commenting on our latest innovation, Chris Rowthorn, Head of Operations New Business notes:

“The capacity to buy, prepare and retail used cars quickly is the critical skill that dictates success for any used car dealer. Anything that can add value/remove cost to the process will be of interest to dealers. Even modest improvements can quickly make a difference. An improvement in the stock purchasing/funding process is precisely what Supplier Direct Funding has achieved.”

For many dealers, auction houses have been a mainstay of their stocking approach. Whether dealers purchase stock digitally, by telephone or in-person, Supplier Direct Funding can now make a positive impact for the dealer community.

Collaborating with long-term wholesale funding software partners APAK, we've pivoted the traditional funding process. Instead of dealers paying the auction house for stock and then adding each vehicle to their stocking plan to seek funding from us, the auction house loads the vehicle to the dealer’s plan and we pay the Auction house directly.

The elegantly simple fully automated digital shift changes everything delivering a repeatable benefit that takes time, cost and friction out of the historic auction house purchasing/stock funding model.

Helping dealers free up cashflow

• Cashflow – the flow of funds is accelerated; having been notified by the dealer that Supplier Direct Funding is their method of payment; the auction house invoices us for 100% of funds, plus their auction costs and provides full vehicle details. Digital authorisation sees the auction house paid electronically by return. On Day 1 an agreed purchase price reimbursement percentage (typically 20-30%), plus auction costs are debited from the dealer. Currently, MotoNovo reclaims VAT from dealers alongside their auction costs, but a move to start funding the VAT element is imminent.
• Time – with stock details now added automatically to the dealer’s stock funding plan, the need to manually upload vehicle details and ‘pay & reclaim’ is removed
• Convenience – automatic stock loading lightens the audit requirements and streamlines the process considerably.

The new service is live with Aston Barclay and Manheim auctions, with discussions ongoing with other auction providers.

In closing, Chris reflects; “In an environment where time is money, Supplier Direct Funding builds upon our highly competitive stock funding model for dealers, offering them repeatable savings on time and therefore money. From the pilot work and dealer feedback, we know the new service is having a positive impact for dealers and is yet another example of our dedication to the dealer community in what remains a challenging environment.”

Press release issued by MotoNovo Finance, December 2020