Moneyway targets premium end of motor market with new product

THE motor finance arm of Solihull-based Secure Trust Bank is looking to enhance its presence in the market place with a new product aimed at making the business more appealing to dealers.

Looking to capitalise on a buoyant new car market, Moneyway’s Motor Finance has launched the product to make itself a one-stop-shop for the dealers.

It’s already a crowded market place; not least due to the presence of other Solihull-based motor finance operations.

S & U is now free to concentrate solely on car finance products after the £82m sale earlier this year of its home credit division Loansathome4u to NSF, while Paragon Group’s Paragon Bank is enjoying success lending to the motor finance sector.

Moneyway has traditionally specialised in the sub and near-prime lending space but the launch of its new product means it can now tap into the prestige vehicle market.

The firm has developed the two-tiered product in order to provide the most flexible and bespoke offering to its customers. In addition, Moneyway will provide a Loans to Value (LTV) of 115%, building upon the recent extension of its maximum lend to £25,000.

The roll-out of the prime product will provide both brokers and dealers with additional choice in the prime space, and further underlines Moneyway’s desire to grow its market share.

The business has seen its lending balances increase to £152.3m, up 19% on last year, including a rise of 10% in balances over the first six months of 2015.

John Simpson, Managing Director at Moneyway, said: “With the objective of lending across the widest part of the risk curve, the prime market is one we have been exploring for some time. Having worked closely with some of our key partners throughout this year to develop and refine the product, we have witnessed high levels of demand from both dealers and brokers to roll this out across the country.

“The launch builds upon an outstanding 12 months for the business and is further evidence of our desire to grow. With the new product, dealers will now be able to offer Moneyway as a one-stop shop for motor finance, boosting sales and providing consistency.”

This comes after a successful pilot scheme which began in April this year. Undertaken with a number of the motor finance provider’s key partners, the firm said the pilot had demonstrated the appetite for the product from the market.

Louis Rix, Director at Manchester-based Carfinance247, said: “During the pilot scheme, Moneyway’s prime product has been received extremely well by both our internal sales teams and consumers alike. It offers competitive terms, high approval rates and strong commercials, whilst also resulting in quick and efficient payouts.

“The new product strengthens Moneyway’s offering in the space, as it enables us to cover customers from a wide range of the risk curve, and we look forward to continuing our relationship with the firm in the coming months.”