Facing up to the direct to consumer threat
More organisations working to muscle in on the success of dealer finance. Sadly, all too many seem opportunistic and have neither the customer nor dealer’s best long-term interests at heart. Online brokers, high st. banks and online classified providers are all active, and we are doing all we can to keep dealers fully informed and able to counter all such threats. Some of the most recent examples include:
Confused.com has attacked dealer finance claiming a “£1.4 billion a year rip-off” for offering an average APR of 9.4% on used cars, whilst publishing their own ‘moderate rate for a £10k car loan is 12.1% APR’. We believe customers are always better served by engaging with the dealer.
Even in just the last few weeks we’ve seen another brand name car aggregator partner with another online broker who offers a direct to customer offer aimed at tempting customers out of their current cars and finance deals early – regardless of whether that is in the best interests of the customer and without the involvement of the lender nor the dealer Certainly, we understand the importance of every sale, but feeding the growing audience of online brokers, simply risks encouraging motor retailing to ‘eat itself.’ We view direct to consumer brokerages as not only a threat to the dealers that underpin the market but also not always working to the best interests of customers. The reality is that without the support of dealers, such broker retailing models will struggle to exist. It is important that every dealer recognises that it is they who have the power.
©2017 MotoNovo Finance.
MotoNovo Finance, a division of FirstRand Bank Limited (London Branch). Registered in England (Branch Reg. No: BR010027) at Austin Friars House, 2-6 Austin Friars, London, EC2N 2HD. FirstRand Bank Limited is authorised and regulated by the South African Reserve Bank. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. FirstRand Bank Limited (London Branch) is a branch of FirstRand Bank Limited, a public limited company registered with the Companies and Intellectual Property Commission in South Africa (Reg. No. 1929/001225/06) Head office: 4 Merchant Place, Corner Fredman Drive and Rivonia Road, Sandton 2196, South Africa