There’s no doubt that the increase in regulation coupled with the negative media attention has resulted in new challenges when selling finance and PPI. The good news is that dealers already have the tools in place to make compliant sales.
As part of the application process the customers capacity to afford the borrowing is checked, and a full demands and needs questionnaire is completed prior to making any PPI recommendations.
As the FSA continues to assess the quality of dealers PPI sales, indications are that many dealers still need to pay attention to:
Dealers should not be discouraged by these regulations – they are in place to protect both the consumer and the sales person. Dealers have a responsibility to offer the option of finance and PPI when purchasing their car. Benefits, include:
And, remember that there is also a direct benefit to the dealer when making compliant finance sales as there is the opportunity to earn commission on each agreement.
All agreements with PPI are eligible for commission, which means that the dealership has the opportunity for enhanced earnings.