first open letter to our dealers
the dysfunctional world of vehicle aggregators
In today’s disruptive market, the dysfunctional world of vehicle aggregation looks ripe for change. We think it’s time for dealers to get into the driving seat and we are putting our money where our mouth is by creating www.findandfundmycar.com.
why might it be seen as dysfunctional?
In our opinion, today’s aggregation model falls short of supporting either dealers or consumers. Here are just some examples of the shortfalls I think need to be addressed:-
- Rapidly rising costs – dealer fees with the market leading service increased by an average of 7.2% last year while its profit before tax rose 23% to £193.4m;
- Losing the finance opportunity – the major aggregation brands all compete directly with their dealers for finance;
- The development of sponsored ads – where those that have paid extra are displayed first, this is not necessarily the best value for the customer;
- Disruption of revenue streams – finance is not the only area subject to competition, so are warranties and other insurance services;
- Even more costs – above inflation fee increases and chargeable finance calculators are just two ways that hard-pressed dealers can expect to have to pay more in the months and years ahead.
We believe dealers risk being marginalised as simply a stock feed to the aggregating ‘retailer’. The dealer takes all the downside risks in terms of stock buying, preparation, stocking and depreciation; the aggregator benefits from the dealer fees, added value services and the Big Data provided by the consumer.
The current classified model strikes us as serving neither dealers or consumers as well as it should and therefore it is arguably dysfunctional. We think there is a better way, based upon collaboration and a co-operative spirit.
The power for change rests collectively with dealers. It’s time to use it. If the industry stands together, then positive change will follow. Our new service findandfundmycar.com is being developed with dealers for dealers.
All advertising fees paid by dealers are invested in advertising;*
All dealers pay the same – we don’t believe in the creation of an uneven playing field;
Your finance revenue is yours to keep;
Finance calculators are completely free of charge;
Search results are transparent and fair and do not attempt to mislead the consumer;
Car buyers experience a compelling proposition that focuses on you, the quality dealer;
*£1.50 (+ VAT) per space per week with prices fixed for 6 months
Together we can create the classified site dealers always wanted; one that works for dealers and consumers. The only barrier to its success is dealers’ willingness to support it.
Call us for more information on 0844 770 4424 or we want to hear from you if you have moved away from the market leading aggregator to share stories and be part of the revolution.
We look forward to hearing from you.
©2018 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