MotoNovo Finance has launched a pricing product that it says will help redefine dealer finance for used cars.
The Cardiff-based independent finance company said innovation in used car dealer finance was fundamental to the ‘new normal’ environment for car buying and retailing as the UK emerges from lockdown.
Its MotoRate finance pricing product would be a positive move for dealers and buyers, it said, pointing to a pre-lockdown test that resulted in an increase in dealer finance penetration of at least 40 per cent as well as increased stock turn, among the benefits.
The risk-based transparent pricing approach of MotoRate allows lower headline representative APRs, which MotoNovo said was central to its success.
MotoNovo chief executive 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 per cent, led by low headline rates, the lack of transparency on used finance sees penetration levels often below 20 per cent.
‘At a stroke, we can change things, driving up finance penetration with highly competitive rates.’
He added that MotoRate embraced FCA requirements, letting customers control their finance journey, and would remove negative perceptions of dealer finance.
‘The feedback from the pilot of over 100 dealers could hardly have been more encouraging,’ he said. ‘At a time when we need fresh thinking, the pilot dealers’ responses have been extraordinarily positive.
‘The capacity to promote a highly competitive span of rates has been a great marketing tool that is increasing trust, underpinning a new way of working that works for dealer and customer.’
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