What is the value of an extra 4 working days pa to a dealer?
This is the question raised by a real-world monetisation for dealers funding an average of just 22 used cars switching to MotoNovo Finance's new Supplier Direct Funding (SDF) platform. If the number of cars were higher, so would the level of time and cash flow savings which already equate to over £1000 p.a. savings. Added to this, through March MotoNovo has suspended all 'loading' fees for vehicles purchased via SDF, saving dealers a further £440 on average.
It may not sound like a lot, but if dealers can use each day saved to sell an additional car, it is money to the bottom line.
Commenting on its latest innovation, Chris Rowthorn, Head of Operations New Business, notes:
"With well over £2.5M of used car stock already funded on our new digitised Supplier Direct Funding, we have been able to monetise the value of a change to traditional used stock funding. It costs nothing, removes the time required to load the stock onto the stocking platform, reduces the time and arguably hassle required for stock auditing and helps cashflow.
The total time/value may seem modest to some, but this is a repeatable benefit and represents the way digitising processes can help to make all dealers leaner and more profitable."
Collaborating with long-term wholesale funding software partners APAK, MotoNovo has pivoted the traditional funding process. Instead of dealers paying the auction house for stock and then adding each vehicle to their stocking plan to seek funding from MotoNovo, the auction house loads the vehicle to the dealer's plan and MotoNovo pays the Auction house 100% of funds, plus their auction costs directly. A move to start funding the VAT element is also imminent.
*Article Source www.rocketperformance.co.uk