If your finances have been impacted by the COVID-19, we’re here to help. Please click here for more.
MotoNovo responds to FCA interim report
MotoNovo Finance has given the thumbs-up to the just-published Financial Conduct Authority interim report into motor finance.
It said the report was “largely supportive” of the approach taken by the motor finance industry in areas such as credit and residual value risk management.
Before publishing its final motor finance report by the end of September, the FCA will look further at affordability checking, particularly for people with lower credit scores; commission arrangements and transparency of customer information.
MotoNovo Finance motor division CEO Karl Werner said the group was anticipating the demands of the FCA.
“The bright future that I foresee for dealer finance has to be earned with a greater reputation for quality and customer care.
“We have adjusted our credit assessment process over recent months, changed commission arrangements and provided a range of tools to support greater transparency."
“All of these, we see as positives because they are aimed at building car buyers’ trust. We will continue to evolve our products and services in order to further enhance customer outcomes.”
Werner said dealer finance needed to be established as a "high-quality" financing option for car buyers with clear benefits that make it distinct from other finance options.
“These are attributes that we consciously embedded into the findandfundmycar.com service, placing the supplying dealer at the centre of the finance journey, rather than a third-party."
“Car buyers can now gain direct access to a new level of transparency and process engagement. It provides a foundation to increase the overall size of the dealer finance market in a competitive manner, and win over consumers who previously may never have opted for dealer finance.”