Rance said preparation was key: an in-depth, well thought-through application was the first step to straightforward authorisation. Applicants should allow sufficient time to get their submission in shape.
“More dealers are coming to realise a new level of processes and controls will be required for compliance,” said Harris. “Many, it would appear, have left the required change very late.”
Codeweavers has created a ‘deal selector’ tool to help dealers meet FCA regulations – it means retailers and customers can compare finance offers.
“It ensures the finance product selected is based on what suits a customer,” said Harris. “Regulation may be forcing the pace of change, but I believe dealers will come to see it was the catalyst to ensure that, often provided online, dealer finance is the best place for car buyers to access the loan they need.”
James Tew, director at iVendi, said his company’s new digital platform would not make dealers FCA-compliant, but could help them to achieve it.
“It assists both customer and dealer – we bring the two sides together while providing what each wants,” he said.
“We see the showroom as the place for eventual fulfilment – the final stage of car buying, which increasingly begins with online research.”
Tew said the core difference between iVendi’s platform and others was connectivity. It provided the buyer looking for a car on a dealer’s website with all the information they needed, while storing it for the dealer, who then had a strong lead to follow up.
“This fulfils a core FCA compliance benchmark,” said Tew. “Some prospective buyers feel trying to find the right finance product is like entering a digital minefield. We help those who struggle to cope with the latest digital technology.”
Mind the GAP: insurance not Included in loans compliance
Gaining FCA authorisation to provide loans for cars will not entitle dealers to sell insurance add-ons such as GAP insurance, which requires separate permission from the FCA.
David Parrondo, deputy managing director at Mapfre Abraxas, said: “Ensuring compliance for consumer credit will rightly continue to be a priority for dealers, but we’re also in a very important phase in the FCA’s review into add-on insurance products.”
Parrondo said insurance providers should be offering support and guidance to dealers, and assuring them that they have a strong voice in providing input to the consultation process.