A white paper suggesting new directions for motor finance following 2025’s Supreme Court decision and the Financial Conduct Authority’s (FCA) current redress scheme is being launched this week by iVendi.
Titled “Where Now for Motor Finance?”, it examines how dealers and lenders are responding to changing needs and demands in the sector, and looks at the best practice ideas emerging as a result.
At iVendi, we believe there are four key trends developing around the significant profit centres of motor finance and value-added products (VAPs) such as warranties.
They are new motor finance structures for dealers, a move towards price comparison-style searches, the adoption of pre-approval and finally, the evolution of VAP schemes in response to changing conditions.
By increasing their understanding of these areas, there are significant new profit opportunities emerging for dealers and motor finance providers, and the white paper explains how these can be maximised.”
Many of these new ideas had been encountered during the development of iVendi’s Finance Navigator, he explained. Launched in June, this enables dealers to undertake searches on behalf of vehicle buyers across all participating lenders in their panel, returning results in under 10 seconds that show monthly payments, personalised finance rates and the likelihood of approval – including pre-approval where applicable.
The platform is designed to make the whole motor finance process much more transparent, compliant, efficient and effective, and has seen many of our dealer and lender partners rethink their overall approach to fully exploit the potential of the technology, a development that prompted much of the content in the white paper.
He added that many of the ideas appearing were also part of an ongoing shift towards more customer-focussed lending that had been underway for several years. Recent developments such as the Johnson case, with its focus on an “unfair relationship”, were really just further steps in a much longer-term process of improvement.
What changed towards the end of last year was the Supreme Court and FCA redress provided greater clarity, something that has allowed us to ask key questions with more certainty, such as how dealers and lenders are responding to changing needs and demands, and what successful ideas are emerging as a result?
The white paper describes our vision of this new motor finance world and we believe there are many reasons to be optimistic. By working harmoniously with lenders to help them manage risk and return, with dealers to enable them to increase rather than just sustain profitability, and with consumers to provide the means to make the best borrowing decision, it’s possible to create processes where everyone wins.
“Where Now for Motor Finance?” can be downloaded at https://www.ivendi.com/what-now-for-motor-finance.
James Tew, CEO at iVendi
