The Financial Conduct Authority has announced it is looking deeper at historical agreements between motor finance companies and their brokers or car dealers because of mounting complaints, some of which have been upheld by the Financial Ombudsman Service. But what is causing its concern?
Historical arrangements used by motor finance firms to pay commission to car dealers and brokers are being reviewed by the Financial Conduct Authority in case consumers have not been treated fairly.
The benefits of an agency-style model, where the new car journey is managed online and manufacturers pay a handling fee to retailers, largely outweighs the disadvantages, according to senior executives at dealer groups already experiencing mixed commissions at work in their businesses.
MotoNovo has urged dealers to ‘be prepared’ for car buyers' greater levels of interest in a dealer’s finance commission.
Our new December 2020 issue of AM magazine is out now here with vital insights into January's FCA motor finance changes and a study of lockdown 2's impact on car dealers.
Coronavius crisis has meant FCA is putting back the release of car finance findings
Kew Vehicle Leasing claims to have become the first leasing broker to openly disclose the amount of finance commission it receives on all regulated Personal Contract Hire (PCH) agreements.
The Financial Conduct Authority has considered whether to force car dealers to tell their customers about the way they earn commission from selling motor finance and the amounts they earn.
The Financial Conduct Authority is considering banning certain commission models in the motor finance sector due to its concerns about harm to consumers.
The Financial Conduct Authority has re-stated its intention to focus on transparency, affordability and car dealers' comission arrangements in its Business Plan 2018/19 as an investigation continues into the motor finance sector.
The Financial Conduct Authority expects to publish an update on its examination of motor finance next month.
Oodle Finance and Carsnip have teamed up to form a new partnership which guarantees car dealers commission payments from sales made via the online retail platform.
The Employment Tribunal has ruled that UK law can be rewritten to reflect commission in holiday pay - but has left car dealers with unresolved issues.
