MotoNovo Finance has recorded the acceleration of stock listed on findandfundmycar.com, with stock on-site seeing a 10% uplift in the past three months.
The company has attributed falling car values and the Financial Conduct Authority’s review of motor finance in early March to the results. Furthermore, the last three months have seen used car values fall by 2.3% (April), 3.1% (May) and 2% (June) according to data from cap hpi.
MotoNovo has encouraged dealers to assess their compliance with finance promotion requirements. The finance-led nature of the service and the credibility of MotoNovo Finance has also been noted as a potential factor in dealer’s decision making when it comes to financial promotions.
Karl Werner, deputy chief executive officer of MotoNovo Finance, said: “The immediate pressure on margins created by falling stock values and action to address costs is an understandable reason for dealers to be challenging their operating costs. However, the move by some early-adopter dealers to start looking at the implications of any FCA changes has been arguably more encouraging.
“The additional potential for margin pressure and the threat of action for failures to comply with regulatory standards are all too clear. In this respect, breaches of online finance promotion requirements are very public. In findandfundmycar.com, we have built a service with finance compliance at its core.
“The positive trend in stock levels is fantastic; more choice we can offer customers, the better. The site has a full range from which customers can choose, from cars costing just a few hundred pounds to a special edition Lamborghini Aventador worth hundreds of thousands of pounds.”
In May, MotoNovo Finance completed its integration with Aldermore, following the bank’s acquisition by FirstRand in March 2018.
The integration marks the amalgamation of FirstRand’s UK operations in retail, business and motor finance. By integrating the two firms, FirstRand hopes to fund new MotoNovo business through Aldermore’s deposit base and securitisation operations.