Strong growth leads to sharp increase in pretax profits for year to December 2019 at CarMoney

CarMoney, the rapidly expanding Motherwell-based motor finance business, saw a sharp increase in profitability in the year to 31 December 2019 which was driven by a 21 per cent uplift in turnover.

During the year to 31 December 2019, the Company, which employs 74 people, saw turnover rise to £4.1m from £3.4m, generating a spectacular 861 per cent increase in profit before taxation to £305,318.

CarMoney’s Managing Director, Alastair Grier, said: “We are doing well because we focus on the needs of our customers. Our customer reviews give us a satisfaction rating of 4.78, or 95%, and we aim to improve even on that excellent score year on year.

“The increase in profit is driven through the now firmly secured embedding of our operating model. We have been working hard with partner Fintech businesses, AutoConvert and Xero, to increase efficiencies and to give customers and dealer partners a faster, slicker experience when financing a car.

“CarMoney’s ever-growing team is disrupting the market across the UK by applying technology to take away the discomfort of buying a car through helping guests smoothly navigate their way through the process, all the way from choosing the right vehicle from a respected dealer, to putting the best finance package in place.

“We have sustained our growth throughout 2020 despite the Covid-19 epidemic, and continue to win new contracts by maintaining very high customer satisfaction levels and hiring motivated team members.”

The business has continued to provide car finance to customers who were able to take possession of their new vehicles via home delivery or click and collect wherever possible. This was facilitated by a UK-wide network of dealers, while setting best in class processes to keep guests and colleagues COVID safe.

Additional demand for e-commerce transactions meant that CarMoney was not only able to trade at normal levels but to accelerate the pace of progress in recruitment, technology, operational performance, and colleague training.

“These will be key areas of growth in the future”, said Mr Grier.

CarMoney, which secured £879m of approved car finance in 2020 for 6805 vehicles, up from 5736 in 2018, is divided into Retail and Dealer Teams. The Retail Team provides borrowers with a guaranteed funding package before they buy a car, thereby putting them in the best possible position to negotiate on price.