The FCA’s Policy Statement and its reference to finance firms introducing risk-based pricing as a commission model that fits within the requirements, demonstrates that MotoRate could be leading the way forward for dealer finance. The importance of compliance with FCA requirements has proved to be crucial to MotoRate’s momentum. However, add in the impressive impact on dealers’ finance penetration level and the subsequent positive word-of-mouth effect and a move to MotoRate is compelling.
MotoNovo CEO Mark Standish is delighted with the impact, noting; “The response by dealers to MotoRate has been very encouraging. Dealers have welcomed the way in which MotoRate embraces the spirit and letter of the FCA’s Policy Statement. They certainly like the impact it is having on their businesses and how they can compete with personal loans on price and transparency. An overall 40 per cent growth in finance penetration is a very powerful reason for switching and this is exactly what we have seen.”
Dealer positivity surrounding MotoNovo is typified by JT Vehicles South Lakes’ director Jamie Tyrie who noted: “MotoRate has allowed us to offer our finance with confidence. Led by the very competitive rates and high acceptance levels, we can compete with banks on price and beat them on convenience. We are making it easier for customers to choose us for their car and finance because the whole process is fast and transparent.”