Almost a third of car dealers aren’t aware of the new rules on commission.
That’s according to research by Close Brothers Motor Finance, whose study of 200 new and used dealerships asked them how much they knew about the changes.
It found that while just over two in three (69 per cent) knew of the new rules, only a third had actually read the Financial Conduct Authority’s consultation paper – and 32 per cent didn’t even know the rules were taking effect.
The paper, published in October 2019, aimed to keep the industry fair and safe and improve customer outcomes.
Dealers were subsequently expected to clarify commission disclosure rules to increase transparency, and pricing models linked to commission were banned.
The new rules have to be brought in by dealerships by January 28, 2021.
Seán Kemple, managing director of Close Brothers Motor Finance, said: ‘The new FCA changes may seem like a long way off but it’s important we do all that we can to support our dealers in the run-up to new regulation being enforced.
‘They need to understand the rules and be well prepared to make changes where needed as soon as possible.’
He added: ‘It’s been a tough year for dealers with the closure of showrooms during the national, and now regional, lockdowns.
‘Combined with economic uncertainly and Brexit, this may feel like an additional challenge at what is already a difficult time.
‘But we’re here to support our dealers and help them understand what the changes mean for their business and customers.’
Among the initiatives launched by Close Brothers, dealerships that are open can benefit from face-to-face support and training with their local account manager.
Dealers facing lockdown measures, meanwhile, will be supported when their showrooms are back open, while also receiving virtual guidance where possible.
Written guidance is being made available too, including tips and guides to help dealers navigate through the changes.