• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

Nearly a third of car dealers don’t know that the rules on commission are changing

John Bowman by John Bowman
December 14, 2020
0
Home News

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.

  • Financial Conduct Authority confirms ban on motor finance discretionary commission models

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.

  • Register as a Car Dealer member and get more out of the website here
  • Car Dealer Mag issue 153 is out now – Read it here
  • Join our breaking news WhatsApp group – Click here to join now
Previous Post

Partnership deal struck between iVendi and YesAuto over motor finance technology

Next Post

Used car sales fell 22 per cent in ‘Lockdown 2’ but high demand expected through Christmas and into 2021

Related Posts

What used car stock was hot at the end of 2020?
News

What used car stock was hot at the end of 2020?

January 14, 2021
News

SMTA urges Scottish government to provide clarity for car dealers on new click-and-collect rules in force from Saturday

January 14, 2021
News

Jan 14 round-up: Pharmacies to give vaccines; Trump impeached twice; Debenhams to close stores; Porsche Boxster is 25

January 14, 2021
John Clark Motor Group sees losses deepen to nearly £2m
News

John Clark Motor Group enjoys profit rise to £12.8m despite lower turnover

January 13, 2021
Consumers confused by car finance terms, according to new research
News

Car repossessions allowed to recommence on January 31, despite FCA extending help for mortgages

January 14, 2021
Scottish government looks to phase out new petrol and diesel cars from 2032
News

Click-and-collect to be banned in Scotland from Saturday for car dealers but hope deliveries will still be allowed

January 14, 2021

Want to receive the latest news?

Sign up to the Car Dealer daily news briefing for the latest news and advice during these unprecedented times.

Subscribe Now
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

December 21, 2020
Used Car Awards Shortlist: Find out who made it through mystery shopping and are now in running for our gongs
News

Used Car Awards Shortlist: Find out who made it through mystery shopping and are now in running for our gongs

January 6, 2021
Investigation: Should car dealers be selling and delivering during lockdown?
News

What do we know about online used car dealer Cazoo? Who is Alex Chesterman? And will Cazoo float on the stock market?

January 5, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 5, 2021
Used car dealer Cazoo accused of online-only U-turn as it sets up physical sites and closes Imperial dealerships
News

Comment: Why Cazoo founder was naive to label this used car sales business as ‘flawed at every level’

December 1, 2020
Car Dealer Power

Car Manufacturer of the Year – Where did your manufacturer rank in Car Dealer Power 2020?

November 23, 2020
Investigation: What do car buyers want from online car sales? New research reveals customers’ likes and dislikes
Car Dealer Live

Investigation: What do car buyers want from online car sales? New research reveals customers’ likes and dislikes

November 28, 2020
Car Dealer Power

The best car dealer suppliers named in the Car Dealer Power Awards 2020

November 26, 2020
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server C