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Carlyle champions dealers and backs report

Carlyle Finance believes dealers are “the logical and best place for consumers to source car finance”, said chief executive officer Mark Standish.

He sees the Competition Commission report as encouraging, adding: “The move to increase pricing transparency will put dealer finance on a more even footing with other loan providers. It matches our desire to see that dealers are treated fairly.

“Over recent years some loan providers have used PPI sales to subsidise loan interest rates, creating artificially low headline rates.

“It is unclear if this practice will be allowed to continue. If it does there will be a requirement for more transparency so consumers will know the true cost of their loan.”

Standish said a ban on the sale of PPI at the point of sale would be draconian.

He said it would have a limited impact on dealers because many opted not to sell PPI.

He noted that the commission reported there was evidence to suggest the sale of PPI could be being used to subsidise personal loans offered by some providers.

Dealers could be competitive if all consumers are offered PPI with the product range well explained and priced and appropriate to their needs.

“Historically F&I was the fifth profit centre within motor retailing.

Recently that focus has increasingly been on finance and away from insurance,” he said

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