The auto industry has been waiting on the FCA's policy statement about these commission models with new regulations to be possibly introduced later this year.
MotoNovo stated it is “determined to take a lead in helping the dealer community to be ready and able to turn challenge into opportunity”.
Chief Executive of MotoNovo Mark Standish said: “Embracing FCA regulation to ensure the fair treatment of customers consistently can create a good customer outcome and a good dealer outcome at the same time.”
Car dealers have been encouraged to make the end results much fairer for consumers.
MotoNovo also said that creating a consumer-focused effort around auto financing must be apart of a dealer's operations and should include consumer financial promotions, sales endeavors, and continual customer service.
The company believes that a dealership that uses these guidelines would benefit the consumer and the dealer.
Standish said: “With new car finance data indicating a finance penetration of 91.2%, while used car penetration often lingers at under 20% and at best circa 40%, there is a huge opportunity for dealers; one that can be realised by delivering good customer outcomes consistently.”
Standish added: “The vast majority of people buying a car need finance as the current new car finance penetration evidences. If dealers fail to fulfil this customer need in a compelling, timely and compliant fashion, then in today’s increasingly digital car retailing environment, they risk losing not just a finance opportunity, but the car sale as well. However, get the customer finance experience right and car buyer and dealer can benefit.
“We need to take dealer finance online with the type of Self-Serve capability that customers want and which we offer dealers, or risk losing the opportunity. With tools such as findandfundmycar.com and new pricing mechanics, we can transform used car finance to benefit car buyers and dealers. Changing to embrace new ways of promoting and delivering used car finance to sell cars is critical. Rather than wait, dealers can make these positive changes today and we can help them to achieve them,” he concluded.