A survey has revealed that 43% of dealers think the new Financial Conduct Authority (FCA) rules will have no impact on finance sold in showrooms, with a further 19% expecting the impact of the changes to be positive.
An Auto Trader survey, which polled the views of more than 150 dealers in December, also revealed that more than half (52%) of those surveyed said they felt comfortable asking sensitive financial questions of consumers, compared with 35% who said they were not.
The questions are a new requirement designed to ensure customers can make repayments for any loan agreement and constitute one of the most significant changes in the interaction between seller and buyer.
“We know the FCA changes have been challenging for some, but the reality is that most dealers have embraced the changes without too much disruption to their business” said Paul Harrison, Auto Trader head of finance.
“On the whole, experience with the FCA itself has been positive. However, perhaps a little more needs to be done in terms of communication to help dealers confidently navigate the new finance landscape.”
56% of dealers said they were either very satisfied or fairly satisfied with the FCA itself. However, 52% said that they would welcome more guidance relating to car finance sales. 13% would also welcome more training to feel comfortable asking customers sensitive financial information while 65% urged more support from finance company partners.
The Auto Trader survey was run in the first week of December. 76% of respondents work within the independent sector, 3% work for car supermarkets and 21% for franchised retailers.