By Tony Willard
With the new 63 plate likely to make September the 18th successive month to record a rise in first registrations, MotoNovo Finance chief executive Mark Standish urges dealers to think more widely than low rates when promoting loans.
He wants dealers to ensure retail car buyers appreciate the wider benefits of dealer finance: “With used car sales outnumbering new by over three to one, it is a message applicable to all dealers.
“I am concerned the industry risks educating consumers that the appeal of dealer finance is low price. But it is also convenient and rapid, offering consumers sector-leading acceptance levels and a very high level of consumer protection.”
Standish said compared with personal loans, the case for most car buyers should be compelling, but all too often these benefits are not communicated, in part, he said, because dealers leave finance promotion too late in the buying cycle.
“With the exception of special offers, information on dealer finance is in short supply online,” said Standish.
“That is where customers increasingly make their buying decision, which includes finance. All too often, low rate finance is the only easily accessible part of finance promotion on a dealer website.”
Standish said MotoNovo research supports the impact of digital media on car buying, adding: “Customers don’t want promotional copy, but insightful and helpful information. There is a plethora of car reviews but, for finance, the risk is prospective customers go to loan providers or comparison sites.
“They risk missing key features that could help make dealer finance compelling and help close a sale.”