FCA Calls for Better Finance Selling Standards
We know that the finance behind a car sale is vital to dealerships. We also know that customers are often grateful to be able to secure that finance. But the suggestion from a new survey that a third of customers simply ignore what they’re being told about the finance they’re being sold is a bit startling.
But that’s what BuyaCar reckons.
And let’s not forget, this is still a massive part of our business. Despite the lockdowns, in the 12 months up to November 2020 more than 1.2 million used cars were financed, to the tune of £16.2 billion.
BuyaCar surveyed over 400 car buyers and concluded that they want greater transparency and more independent advice when it comes to finances. In summary:
- There’s an appetite for clearer, more transparent advice
- Almost 50% of those surveyed would like a salesperson to suggest finance based on affordability (we’re amazed that 50% didn’t think this!)
- Only 10% said they thought the cheaper option might be best for them while another 10% would be offended if a cheaper option was offered!
- A quarter of buyers pay cash
- Nearly a third of those surveyed said they ignore a salesperson’s advice on finance, while another third felt that the finance options were ‘completely clear’ to them – meaning a lot more felt the advice was not clear.
The survey coincides with a new call from the Financial Conduct Authority (FCA) to encourage dealers to promote the finance deal that most suits the customer’s own requirements, rather than selling products based on the commission the dealership earns.
So, please tell NTK Motors, what do you and your colleagues do? Push for the best commission? Or push the best deal for the customer? Let me know in complete confidence here firstname.lastname@example.org