MOTONOVO has launched a new finance pricing product following the results from an extensive pre-lock-down pilot which revealed:
- An increase in dealer finance penetration of at least 40%
- 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.
Central to the new MotoRate risk-based pricing approach is:
- The capacity to provide lower headline Representative APR’s
- A transparent pricing approach where the interest rate is defined by the customer’s circumstances, not the dealer as sought by Financial Conduct Authority (FCA) in their review of the motor finance sector
- An opportunity to increase used car finance penetration significantly
MotoNovo CEO Mark Standish said: “As we emerge into the ‘new-normal’, we have an opportunity to redefine the dealer model and finance can be an integral part of this change. Where new car finance penetration is running at over 90%, led by low headline rates; the lack of transparency on used finance sees penetration levels often below 20%.
“At a stroke, we can change things; driving up finance penetration with highly competitive rates; embrace FCA requirements; let customers’ control their finance journey and remove some of the negative perceptions of dealer finance promoted in the media.
“The feedback from the pilot of over 100 dealers could hardly have been more encouraging.”