MotoNovo Finance has announced it has seen a surge in proposal and business activity, since it revealed it was lifting lending restrictions.
In the period May 11-15, MotoNovo says business activity returned to around half of pre-lockdown volumes, which offers a positive sign to dealers seeking to establish click and collect services in England.
Mark Standish, chief executive at MotoNovo Finance, said: “The first week of activity following our move to lift lending restrictions has delivered an encouraging impact; especially since the lockdown was very largely in place and that showrooms were and must remain closed.”
MotoNovo’s business activity during May 11-15 revealed a 71% increase in proposals and a 79% increase in pay outs week on week. In comparison of performance achieved in a lockdown period to pre-lockdown March data, proposals were 65% and pay outs were 60%.
Standish says the data provides a promising indication for dealers looking to develop click and collect services and emphasises the importance of finance.
Standish said: “In previous challenging economic times, we expect to see strong demand for dealer finance because access to unsecured lending is often more restricted than secured HP/PCP finance.
“The increase in customer finance activity at our findandfundmycar.com over recent weeks is evidence of this trend. Leading on finance availability and affordability will be important to dealers looking to create customer interest.”
Standish also says there is a critical need for dealers to undertake risk assessment requirements and completing all necessary steps to protect employees and customers before opening a click and collect service.
Standish said: “It is time for dealers to reassess their business models to get leaner and closer to their customers. At the top of this change list right now must be the required risk assessment actions to keep people safe and create reassurance and buying confidence for customers and staff.
“To assist the dealer community, we have developed a risk assessment toolkit that signposts dealers to resources that can help them to develop an appropriate health and safety approach.”