Motor finance firm, MotoNovo Finance, says both consumers and the motor finance community should be reassured by the FCA’s (Financial Conduct Authority) recent interim report issued by the with respect which is largely supportive of the approach taken by the motor finance industry in areas such as credit and residual value risk management.
Commenting on the interim report, MotoNovo Finance’s Motor Division CEO Karl Werner says, “I’m encouraged by the FCA’s latest update on motor finance. By continuing to develop the motor financing model, we can look forward to a bright future for the industry and to helping more car buyers see dealer finance as their natural default option. The key will be about embracing the FCA’s thinking, which shines a clear light on the value of a high integrity approach for the sector.
“The cornerstone to this opportunity is establishing dealer finance as a high-quality financing option for car buyers with clear benefits that make it distinct from other finance options. These are attributes that we consciously embedded into the findandfundmycar.com service, placing the supplying dealer at the centre of the finance journey, rather than a third-party. Car buyers can now gain direct access to a new level of transparency and process engagement. It provides a foundation to increase the overall size of the dealer finance market in a competitive manner, and win over consumers who previously may never have opted for dealer finance.
Before publishing its final motor finance report by the end of September, the FCA will look further at three areas; affordability checking, notably for people with lower credit scores; commission arrangements and transparency of customer information. Assessing these areas, Werner concludes;
Werner concludes by saying, “The bright future that I foresee for dealer finance has to be earned with a greater reputation for quality and customer care. We have adjusted our credit assessment process over recent months, changed commission arrangements and provided a range of tools to support greater transparency. All of these, we see as positives because they are aimed at building car buyers’ trust. We will continue to evolve our products and services in order to further enhance customer outcomes.”