James Tew, Ivendi chief executive, believes the industry needs to be offering more choice for motor finance at the point of sale to avoid the Financial Conduct Authority (FCA) turning its regulatory eye to the area.
Tew (pictured) said: “The FCA’s actions on GAP were designed to tackle a perceived lack of customer choice. What would happen if the same approach was applied to point of sale motor finance?
“The fact is that most dealers currently offer only a very limited choice, some simply sticking with one product from one lender. If we are to head off any potential FCA intervention, we need to start offering more.”
Tew said dealers need to ensure there are genuine options for car buyers, with different types of products and also different interest rates providing for those with different risk appetites.
He said that transparency and information were crucial, allowing customers to be presented with a range of informed choices in a neutral manner.