Stock funding levels surge at MotoNovo Finance
The demand for MotoNovo Finance's distinctive Supplier Direct Funding service continues to gain momentum. A record performance in July fuelled an acceleration that saw the funding service break through the £35m barrier.
Based upon funding Supplier Direct Funding's average of 22 vehicles, the service saves dealers an average of four days in time and over £1,000 in cashflow terms per year. The time saving has proved particularly attractive to the dealer community.
Instead of dealers paying auction companies for stock purchased and then manually keying in each vehicle to their stocking plan, Supplier Direct Funding pivots the model entirely. Under the digitised model, the auction company loads the vehicle onto the dealer's stocking plan, and MotoNovo pays the auction business.
The simple, fully automated digital shift delivers repeatable time and money saving benefits for dealers and takes the friction out of the historic auction house purchasing/stock funding model.
Advantages include:
- Dealers cashflow is accelerated
- The removal of manual vehicle detail inputting saves time, enhances accuracy and removes the traditional 'pay & reclaim' method
- Dealer convenience – automatic stock loading lightens the audit requirements and streamlines the process considerably
The modest Fiat Panda that saw Supplier Direct Funding pass the £35m milestone provided a perfect example of the service and its promise to take time, cost and effort out of stock purchase and funding.
The successful online bid by a dealer in South Wales for the car on offer at Aston Barclay's Prees Heath centre in Shropshire saw the car purchased, funded and added securely onto the dealer's stocking plan in just a few minutes. All the dealer needed to do was bid and confirm Supplier Direct as the funding source.
It is a speed and agility that Chris Rowthorn, Director of Motor Sales Operations at MotoNovo Finance, believes will be vital as the dealer community faces a more challenging market backdrop. He reflects:
"Supplier Direct Funding is a great case study for marginal gains. As dealers look to be leaner and more agile against a changing trading landscape, it is a great example of helping dealers to benefit from an approach that embraces an 'every penny is a prisoner' principle every time a car is purchased. The service's success is seeing more of our dealers embrace the model. It is a trend mirrored by more remarketing companies. It is a win for all players."
Press release issued by MotoNovo Finance, August 2022
