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Finance providers will increase their support

By Tony Willard

Retail motor finance providers are preparing to step up training for dealers to make the most of the further growth in showroom loans that the Finance & Leasing Association is forecasting for 2013.

Showroom loans now top 70% of new car retail finance and are heading for 75%.

MotoNovo Finance is one lender committed to finance training for dealers, including both guidance on regulatory changes and selling skills. Karl Werner, head of sales and marketing, said regulatory changes would continue to enhance transparency and ensure customers are treated fairly.

“The opportunity for dealers is to gain the moral high ground so that car buyers increasingly view them as convenient, competitive and fair, and the place for car finance,” said Werner.

He said consumer scepticism and regulatory changes were real opportunities for dealer finance to differentiate itself and gain sales.
“To benefit, many dealers need to change their approach, developing their skills and processes and embracing a wider, more engaged view of finance online and in the showroom,” he added. 

Werner said MotoNovo was providing showroom training, selling support and online products to drive change. He believes more dealers are now open to the idea of business development through training.

The company is recruiting to enlarge its field development team. MotoNovo regards compliance with regulatory developments as a natural part of training for motor retailers.

The company believes finance for used cars is a sector in which dealers need to become more accomplished.

“Dealers should take advantage of the current momentum because finance for used cars has been broadly static,” said Werner.

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  • gezza37 - 31/01/2013 15:42

    Used car finance is not usually manufacturer supported so rates are higher to meet the dealerships need for Income per Retail Unit profit. This can mean uncompetitive payments/rates with bank personal loans and many customers know this or get a quote before they come in. Difficult to see how this will change in the future!

  • russell@iVendi - 01/02/2013 16:40

    Afternoon Gezza, I used to work for two manufacturers' finance companies and they were both focused on getting additional used car finance cases on board. But manufacturers financially support new vehicles as there is enough profit in them to give a £1500 deposit contribution etc, from the metal. But this does not exist in used. The web is the future to get peopled hooked on finance at an earlier stage in the process - getting potential customers from browsing on their couch to getting them to the showroom would get finance pen and resulting PPUs up. Bring on the dealer virtual showroom revolution (in small steps)!