Many dealerships have been literally frightened out of continuing to be FSA authorised or selling particular products, such as payment protection insurance (PPI).
There are genuine opportunities in 2008 for those dealerships that have risen to the challenges of FSA regulation. They now have the ability to benefit from the profits available from transacting FSA regulated business.
Because of new sales rules it will become easier to sell gap, extended warranty and many other insurance products. It will not become more difficult to sell PPI but there will be requirements for additional oral disclosures. The new ICOB rules will be published at the end of 2007.
Using the requirements can improve your business and the experience you give your customers, which should lead to happier customers wanting to do more business with you and telling others about you and your qualities.
Those dealerships that have adapted their processes to meet the FSA’s requirements can continue to sell PPI profitably.
In summary, there will be a lot changing in the New Year. 2008 will bring some clear commercial opportunities as well as challenges and you need to be ready to take advantage of these.
Alliance will be running a number of workshops from January, designed to offer practical guidance in implementing the new requirements within a motor dealership environment. For details of the workshop near you, or for individual help, email firstname.lastname@example.org or telephone 0845 226 2970.