• Latest
  • Trending
Consumer’s creditworthiness awareness set to drive change in dealer finance

Consumer’s creditworthiness awareness set to drive change in dealer finance

After China central bank vows to crack crypto trade, Bitcoin slips

A glimpse of Cryptoverse DEX, and a brief accounting

FTX invested $300 million in Bahamas property as “personal fiefdom”

FTX invested $300 million in Bahamas property as “personal fiefdom”

Ant group sees fine from China over $1 bln, suggesting overhaul is almost done

Ant group sees fine from China over $1 bln, suggesting overhaul is almost done

Africa calls for climate finance tracker

COP27 agreement achieves a milestone on “damage and loss,” but not more

Budweiser World Cup advertising is limited by Qatar’s liquor ban; not destroyed

Budweiser World Cup advertising is limited by Qatar’s liquor ban; not destroyed

UK trade policy : A comprehensive strategy for a new beginning

British insurers serve as a trial run for the post-Brexit “unshackling”

STARLINK satellite internet service gets 500,000 preorders, Musk says

Musk claims he was engaged in revitalizing Tesla while upholding his $56 bln package

In a long-awaited trial, Roche’s Alzheimer’s medicine falls short of its objective

In a long-awaited trial, Roche’s Alzheimer’s medicine falls short of its objective

Electric vehicle manufacturers struggle financially—struck by exorbitant prices

Electric vehicle manufacturers struggle financially—struck by exorbitant prices

After China central bank vows to crack crypto trade, Bitcoin slips

Bahamas investigators are looking into the FTX collapse

Volatility is most essential for crypto ecosystem

Morning Bid: Crypto a disaster, Congress looking different ways

Binance registers with Italy’s regulator amid plans to expand in Europe

Cryptocurrencies drop after FTX-Binance dispute worries investors

Global Business Review Magazine
Tuesday, February 7, 2023
Nominate Here
  • Home
  • Banking
  • Finance
  • Technology
  • FinTech
  • Business
  • Videos
  • Events
  • Awards
  • Magazine
No Result
View All Result
Global Business Review Magazine
No Result
View All Result

Consumer’s creditworthiness awareness set to drive change in dealer finance

Consumer’s creditworthiness awareness set to drive change in dealer finance

When it comes to financing a used car purchase, 32% of people would not consider finance from a dealer, 31% of people would consider finance from a dealer, 33% of people would choose a High St Bank/Building Society. These numbers from MotoNovo’s recent Attitudes to Car Buying Research suggest a modest shift by consumers away from dealer finance.

The latest world data suggests that a trend away from dealer finance for used cars may be emerging. Used car consumer finance volumes fell by 7% YoY in August. The overall consumer credit market in August fell by 2.8%. August’s numbers followed a year-on-year fall of 19% for used car finance against a much smaller fall of 2.7% for consumer credit. This is not an exact comparison. And these numbers suggest that dealer finance could have lost ground to personal loans.

YOU MAY ALSO LIKE

COP27 agreement achieves a milestone on “damage and loss,” but not more

Budweiser World Cup advertising is limited by Qatar’s liquor ban; not destroyed

Consumers are taking greater control of their finances, which are empowered by digital tools. It is a challenge the dealer finance community should recognise as MotoNovo’s MD Karl Werner reflects. For players such as MotoNovo who kept lending during the pandemic, supporting their dealers, the pandemic proved to be positive. This pandemic has witnessed a marked increase in consumers awareness of their finances. An accelerating awareness of creditworthiness, driven by a series of digital tools is one among them.

An estimated 30% of people have yet to look at their credit score. Consumers with this information can search for their ideal loan/finance product. Pre-approved loan levels jumped from 33% of applicants in January to 44% in August. Karl is left, and concluded that as consumer behaviours and expectations have shifted, so should the dealer finance model. Consumers are changing the financing landscape. Dealer finance can compete, but if they want to capture the attention and interest of all consumers, they need to embrace a pricing approach that reflects the access to creditworthiness consumers now enjoy.

At MotoNovo, they can benchmark the differences between their ‘MotoRate’ risk-based pricing used by two-thirds of their dealers and a fixed interest rate model, used by a third. MotoRate agreement acceptance rate for August was 50%. Proposal to Pay-out rates are 40% on MotoRate Terms vs 28% on non-MotoRate Terms

Tags: businessfinanceMotoNovo
ShareTweetShare

Search

No Result
View All Result

Recent News

After China central bank vows to crack crypto trade, Bitcoin slips

A glimpse of Cryptoverse DEX, and a brief accounting

FTX invested $300 million in Bahamas property as “personal fiefdom”

FTX invested $300 million in Bahamas property as “personal fiefdom”

Ant group sees fine from China over $1 bln, suggesting overhaul is almost done

Ant group sees fine from China over $1 bln, suggesting overhaul is almost done

Africa calls for climate finance tracker

COP27 agreement achieves a milestone on “damage and loss,” but not more

Budweiser World Cup advertising is limited by Qatar’s liquor ban; not destroyed

Budweiser World Cup advertising is limited by Qatar’s liquor ban; not destroyed

UK trade policy : A comprehensive strategy for a new beginning

British insurers serve as a trial run for the post-Brexit “unshackling”

Global Business Review Magazine

Global Business Review is a online print magazine focusing on the updates and information about on emerging markets, Finance, Banking, Technology. Global Business Review provides news, features, analysis, commentary, and interviews from industry across the globe.

Recent News

  • A glimpse of Cryptoverse DEX, and a brief accounting
  • FTX invested $300 million in Bahamas property as “personal fiefdom”
  • Ant group sees fine from China over $1 bln, suggesting overhaul is almost done
  • COP27 agreement achieves a milestone on “damage and loss,” but not more
  • Budweiser World Cup advertising is limited by Qatar’s liquor ban; not destroyed

Categories

  • Banking
  • Business
  • Events
  • Finance
  • FinTech
  • Tech
  • Videos
  • About
  • Nominate
  • Privacy & Policy

© 2022 Global Business Review Magazine - All Rights Reserved.

No Result
View All Result
  • Home
  • Banking
  • Finance
  • Technology
  • FinTech
  • Business
  • Videos
  • Events
  • Awards
  • Magazine

© 2022 Global Business Review Magazine - All Rights Reserved.

Go to mobile version