He said that although FCA regulation “could scale back penetration levels and profit per add-on product or the finance agreement sold… our view is it absolutely will not cripple the business”.

Financial promotions are also already an area of specific interest to the FCA. It wants offers presented fairly and clearly to consumers, and it has already published some guidance on presenting financial offers through social media.

While many dealers still feel in the dark as to what exact impact the FCA’s regime will mean for their day-to-day operations, the situation will become clearer over time.

Sutton added: “We believe that these changes do not necessarily mean that dealer earnings will be reduced. We believe that dealers can maintain and improve their finance income by increasing penetration as a result of providing competitive and transparent offers.”