Motorway, a used-car marketplace, has launched Motorway Pay – a platform for dealers buying cars to fund an online wallet and release money to private sellers. The industry-first payments service aims to improve purchasing for dealers.
Britain’s used-car market is valued at more than £60bn per annum and continues to grow, with the SMMT reporting a 4.1% uplift in Q1 2023. Yet despite the huge volume of sales, when buying from private sellers, dealers still experience a lengthy process to go through on each individual transaction.
This includes verifying documentation, setting up a new seller as a payee and handling finance settlement. Realising the untapped potential of taking the friction out of this process, Motorway launched Motorway Pay.
Motorway Pay allows dealers to pre-load their wallets prior to vehicle collection and then use these funds to pay for the vehicle. Motorway Pay simplifies admin of collecting and verifying documents, setting up payees and confirming successful payment for both parties. This reduces wait time at the doorstep for the dealer and the seller, and immediate payment confirmations bring the necessary paper trail for both parties.
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Motorway Pay also handles the clearance of outstanding finance. Previously, dealers had to settle any finance separately to the seller’s payment. With over 30% of privately owned cars on Finance or PCP plans, this often adds another layer of complexity in the buying process.
Now, this can all be completed in just one transaction, with Motorway handling the settlement statement confirmation, set-up and confirmation of payment to the finance company.
The service is free to dealers buying through Motorway, and includes an assurance policy to provide security to dealers that all payments go to the right place.
Initially soft-launched at the end of January this year with a test group of dealers, over 1,000 payments with a total value of over £20m have already been transacted through Motorway Pay, and the company is now starting to roll out the service to all dealers. Participating dealers in the initial test group have reported big savings in admin and time, and a better overall experience for them and the sellers.
Vlad Radu, vehicle procurement and operations manager at Carsa, said: “Over £2bn of purchases have been completed through Motorway in the past 12 months and volumes continue to increase rapidly, with their sales now exceeding 1,000 cars a day on average, including many sales of over 1,500 cars a day in the past few weeks. With this growing volume, making it easy for dealers to buy in bulk has been a major focus for the company.”
James Wilson, chief operating officer at Motorway, said: “Simplifying the payments process has been high on our dealers’ wish-list for some time, so we are delighted to be able to launch this industry-first solution with Motorway Pay. Removing the hassle involved with paying private sellers has been a hard problem to solve, but we’ve built a powerful, secure and robust solution that makes buying cars on Motorway in high volumes easier than ever before.
“Having road-tested Motorway Pay in Q1 with a small group of dealers, it’s clear this is a real game changer and a genuine first for the industry. We’re including the service at no additional cost to our dealers – underlining our ongoing commitment to delivering maximum value through technology, and supporting our dealer partners to grow their businesses profitably.
“We’re really pleased that the first phase has been so successful and now look forward to rolling out Motorway Pay across our dealer network.”
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