MotoNovo has dropped relationships with direct-to-consumer online finance sites to focus solely on direct relationships with dealers.
The Cardiff-based motor finance provider said its growth strategy would focus on the role of the dealer.
Karl Werner, chief executive officer, MotoNovo Finance’s motor division, said: “We have concluded that better customer outcomes are created when dealers are integral to delivering the ‘debtor, creditor, supplier’ principle of secured finance.”
This new ‘dealer-centric’ approach sees MotoNovo leave behind direct to consumer online finance models which do not involve dealers at the heart of the financing process.
The motor finance provider argues that dealers must be included within the secure finance agreement to ensure adequate consumer protections.
Werner added: “Subsequently, we have withdrawn from any relationship with a direct to consumer finance model that doesn’t support or include the supplying dealer in the process,”
“Moving forward, we are concentrating all of our energies upon enhancing the capacity of a growing number of dealers to meet the finance needs of car buyers, both online and in the showroom.”
When it was first created, car finance providers thought it likely authorisation processing costs would make it difficult for dealers to sell finance.
However, the classification of car finance among a regulated consumer credit activities requiring limited permission allayed these fears, clearing the path for dealers to have stronger involvement in the process.
MotoNovo will integrate dealers into its online platform, pledging to “help dealers to deliver a more engage online finance journey”, through developing digital finance tools.
Werner said: “With the digital tools and support we offer, the dealer, promoting the car and finance together, is best placed to provide the type of fully integrated customer buying experience and positive outcome that regulation requires. This move is helping us to drive up dealer derived finance significantly this year.”
A MotoNovo spokesperson confirmed to Motor Finance it would focus on relationships which are deemed to be dealer-centric.