New FCA Car Finance Rules & Regulations
The FCA makes a positive change –
New regulations and rules by the Financial Conduct Authority (FCA) have condemned the use of discretionary commission models by retail motor dealers and finance intermediaries.
(To view the FCA report, click here)
In the recent 35-page report, the FCA outlines new rules regarding car finance going forward, these regulations are more of a formality, but they were created to protect buyers from potential unethical practice. As some motor dealers or finance brokers may try to upsell cars or finance products to the detriment of the customer’s wants and needs. Clearly not treating the customer fairly as is a key factor against a trader’s FCA License.
Offering two separate customers differing interest rates on the same car with the intent to drive up the highest commission return from the lender is no longer acceptable. This malpractice will now cease as the FCA requires more transparency in car finance transactions.
This new regulation dictates that a motor dealer or finance intermediary will now have to operate on a fixed APR and commission basis.
What this means for you as a buyer
This means that there is less likelihood of you being charged a higher interest rate on the basis that the seller could earn more commission from your transaction. The finance houses and lenders are now fixing the amount a dealer or intermediary can earn from your purchase reflecting a lower customer interest rate and ultimately a more transparent operation. Good for you and helps remove unfair practices across the industry where balance is the key to a stable trading environment.
Classic and Sports Finance
As a mature and experienced finance intermediary, we have and will always put our clients at the epicentre of our business model in all of our transactions. Listening to and understanding your wants and needs determines how we manage and ultimately deliver on your enquiry. We have never been driven by headline cheap interest rates but by engaging effectively to establish what you are trying to achieve and ultimately concluding good business between us.
You are the customer and without you, we fail as a company, so every effort is maintained to ensure we offer the best of breed from the market delivered with accuracy and experience from highly trained and ethical members of our team.
Driven by you, our knowledge is your power in a somewhat confusing marketplace.