Complying with FCA requirements could lead to an increase in sales. This is the conclusion from consumer research undertaken by MotoNovo Finance.
The research into the experience of customers, who took out dealer finance in 2013, reveals that the ‘halo’ effect of a new car has not dimmed in respect of their approval for dealer finance.
A total of 300 consumers were interviewed in the research.
The importance of competitive and transparent pricing is evident from the reasons consumers opted to choose dealer finance.
Whilst customers often discovered how competitive dealer finance could be when in the showroom, this simply highlights the opportunity for dealers to increase sales by making their rates available on their web sites, said MotoNovo Finance.
Customers value the dealer finance experience
When asked how they intend to fund their next car purchase, dealer finance dominated the response.
A little under 60% of these customers see price as a key factor in their future decision making and a third relying upon the dealership to guide their financing process.
Karl Werner (pictured), head of sales and marketing at MotoNovo Finance, said: “Dealers should be encouraged by these findings because they clearly demonstrate that customers who opt for dealer finance clearly love the experience."
He said the opportunity that these findings reveal is twofold:
1. Finance can help retention
2. Dealers can make in-roads to increase finance penetration by increasing their promotion of finance in a transparent fashion focusing upon competitive pricing. This message can be supported by information about availability and convenience
“We know that many dealers are concerned about the implications of FCA regulation. Our message is that this change could in fact be a catalyst for growth. At MotoNovo, we are ready with a unique portfolio of support tools online and in the showroom. We can help dealers to turn threat into opportunity.”