11:50 am, March 13, 2025
Franchised car dealers have ‘concerns’ over the impact of the ongoing motor finance as uncertainty continues to loom over the industry.
That is according to our Franchised Dealer Panel at Car Dealer Live, who have been giving their thoughts at the British Motor Museum in Gaydon.
Sitting on the panel was Norton Way Motors boss Jason Cranswick, who admitted to having worries about Close Brothers’ upcoming Supreme Court appeal.
However, speaking with host James Baggott he said the situation is not putting customers off, despite it continuing to dominate the news agenda.
‘It’s fair to say we have concerns because it is such a big area of revenue for the business,’ he told host James Baggott.
‘I think there’s always going to be grey areas that some dealers will play in but we’ve always chosen to play it very straight in terms of offering good value products, high quality products and great sales processes. As a result I think there’s still a great opportunity to gain good revenue from F&I.
‘I think the big thing for our industry is making sure that we do professionalise. Everything that regulators do in the finance industry is with intention of getting good outcomes for consumers, which must be a good thing for us.
‘We saw the same if you go back only six or seven years ago with GDPR. We all had to fall in line with new regulations around data as a result we got better data in our businesses. I think we need to embrace any changes.
‘The challenge we live with is that it’s often the knee jerk. We saw it last year, when all of a sudden all lenders, suddenly had to stop, literally overnight.
Dealing with the collateral damage of that is hard because you have to deal with consumer expectation, live deals and helping re-educate sales staff.
It is a challenge but nothing insurmountable and I think the other thing is, by definition, dealers are resourceful. As one door closes, we often then go and look for another area that is open to us.
‘I haven’t seen a groundswell of customers not buying cars on finance because it’s such a fundamental part of how consumers buy cars.’
FCA is the ‘best thing that ever happened to our company’
Also sitting on the panel was Swansway director Peter Smyth, who echoed Cranswick’s concerns over potential redress schemes.
However, he was quick to sing the praises of the Financial Conduct Authority, which has helped to generate significant incoming for Swansway over recent years.
The regulator recently came under fire from MPs, who accused its leadership of being ‘unconstructive’ and in ‘denial’ of problems.
Smyth however, says that the body has been the ‘best thing that ever happened to our company’.
Addressing the scandal, he said: ‘It is a concern and we have made some provisions but I think most of the onus at this moment in time will be on the lenders.
‘I would just like to say that the best thing that ever happened to our company was Financial Conduct Authority, because of what it made us do. It made us offer all the customers, all the products all the time,
‘Since the FCA has existed as our finances have only gone one way and that’s upwards and it’s getting stronger.
‘If the finance companies have to make huge payments to to the to the public, they’ll get it back by putting their rate up. We all sell at one rate nowadays, so at the end, the customer may get a small bonus, but the general public, via insurance, will end up paying for it in the end.’
The final dealer on the panel was Greenhous Group’s Danny Minshall, who was asked which way he sees the Supreme Court ruling next month.
He told the conference that he was expecting judges to support the motor trade, comparing the scandal to mortgage applications and travel agents.
‘I think it will support the industry,’ he said, when asked which way the coin would fall. ‘The FCA are doing their bit to help and support us as dealers.
‘I think it’s something that blew over quite quickly. It was a knee jerk but we still sell finance, customers are happy a commission.
‘It’s no different to your mortgage application and actually it wasn’t dealers fault that these commissions were not declared but it all seems to fall back on us though!
‘You look at holiday companies, job, travel agents. It’s not free is it? There’s a commission so where would it stop?’
