Car dealers in the UK are not worried about the impact of new regulations being introduced by the Financial Conduct Authority (FCA), a survey has found.
The FCA is making motor traders implement stronger measures to ensure people using loans to buy cars can make the repayments. A study by Auto Trader, which polled 150 dealers, found that 43 per cent thought the regulations would have “no impact” on the finance they sold in showrooms, with a further 19 per cent expecting the effects to be positive.
As with car dealers obtaining a road risks insurance or combined motor trade insurance policy, it is important for motorists that they can make the monthly payments with their existing finance. In both instances, conducting diligent checks of their accounts and shopping around for the best deal will help.
More than half of the dealers asked (52 per cent) revealed that they have no problem asking customers sensitive financial questions, while only 35 per cent said they were not comfortable doing so.
Paul Harrison, Auto Trader’s head of finance commented on the findings: “We know the FCA changes have been challenging for some, but the reality is most dealers have embraced the changes without too much disruption to their business.”
Overall, 56 per cent of car dealers said they were either “fairly satisfied” or “very satisfied” with the FCA. However, 52 per cent said that they would welcome more guidance on car finance sales and 13 per cent said they would like training on how to assess if a customer is really eligible for a car buyer loan.