BLOG Shifting to a transparent, eligibility-based motor finance model
The Financial Conduct Authority (FCA) investigation into the sale of car finance has understandably garnered attention from the public regarding market practices.
A significant area of concern for the investigation is a lack of transparency in disclosing interest rates and commission structures.
There are existing solutions and services available, which can improve the customer experience and provide increased transparency.
Providing consumers with complete information about the offers they receive, including commission details, is vital.
Furthermore, solutions must take into account a consumer’s eligibility for certain deals.
Solutions catered for eligibility are already accessible, an area Experian excels in. With products only offered based upon an individual’s financial capabilities, it provides assurance customers are receiving the most suited deal for them.
From the perspective of consumers, understanding and digesting all available options is crucial.
A transition to complete transparency within the market would subsequently lead to customer’s receiving their most compatible plans.
This practice is already found in similar markets, such as the availability of personal loan choices on comparison sites.
A shift to this process would provide dealers clear boundaries to operate within, and reduce the chances of facing any future penalties.
While the outcome of the FCA’s investigation may not be decided for some time, dealers and brokers must act now, regardless of the result.
John
Gerardo Montoya, Managing Director, Automotive, Experian UK&I
