“Franchised dealers have made huge efforts to be compliant with consumer credit rules, they are highly regulated and can only offer car finance under strict conditions” said Sue Robinson, Director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, commenting on the Financial Conduct Authority (FCA) enquiry into motor finance.
As reported by The Times, the FCA will carry out an exploratory enquiry into motor finance as they believe that there might be conflicts of interest and irresponsible lending in the sector. The NFDA is examining the issue.
Robinson continued, “PCPs and other types of motor finance have been around for over twenty years and have become extremely popular as they represent affordable and flexible ways of purchasing new cars.
“Strong regulations and clear rules are positive for the industry, but it is vital that customers clearly understand the terms of the contract they sign when they purchase a new vehicle and that they are aware of the whole package the dealer offers, as it may include additional products and benefits such as servicing, insurance and a contribution towards a deposit.
“The NFDA works closely with the FCA and we will be liaising on the enquiry to ensure that the outcome is satisfactory for both consumers and dealers and the stability of the UK automotive industry is not undermined.”
NOTES TO EDITORS:
About the RMI
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.