8:44 am, April 9, 2026
The FCA is looking to clamp down on car dealers who deploy a ‘sale or return’ model, following the high-profile collapse of two luxury retailers.
In the past six months, Car Dealer has reported on the closures of GVE London and Targa Florio – both of whom had been operating a sale or return approach.
The demise of the duo sparked fury from customers, many of whom claimed they had been left out of pocket and without their cars.
Car Dealer reported yesterday (Apr 9) that GVE London is still holding some customer cars, months on from its collapse, with investigations ongoing to establish who actually owns the vehicles.
The situation has now piqued the interest of the UK’s financial watchdog, which is said to be writing to dealers who currently advertise sale or return.
Automotive legal firm Lawgistics, says that the FCA is ‘demanding evidence of robust risk controls, clear consumer communications and board-level oversight’.
The regulator has not yet to responded to our approach for a comment, but Lawgistics has warned dealers that they need to comply, should a letter come their way.
It is understood that the FCA is looking into issues around risk management processes; consumer understanding and communication; policies, procedures and oversight.
In a blog on the firm’s website, John McDougall, a legal advisor at Lawgistics, wrote: ‘It is never nice to see any business fail. However, it appears that a number of customers have been left without cars or money in these scenarios, which raises concerns for the FCA.
‘These high-profile cases have clearly piqued the interest of the FCA, and it has now started writing to firms to ascertain whether there is an issue in this space.
‘If you receive one of these letters, you must respond within the timeframe. Ignoring it is not an option for an FCA-regulated firm.
‘If you advertise that you offer sale or return on your website, do not be surprised if you receive a letter. Even if you do not handle much of this business, you will still need to comply with the FCA’s request for information.’
Prior to the crisis, Car Dealer visited GVE London as part of our Selling Supercars series. You can watch the full video below:
