Car dealers must be wary of FCA, experts warn

Car dealers need to give careful thought to which finance products they are offering to customers, experts have warned.

According to The Warranty Group, in the Financial Conduct Authority (FCA) era dealers must be offering products that are good for the customer rather than just seeking to boost their own profit.

The FCA checks deals marketed to customers to ensure service providers and retailers are not ripping them off. This means that it is important that dealerships do not take advantage of customers with hidden charges or misleading pricing plans.

Likewise, when a dealership is looking to obtain a motor trade insurance policy it is important they shop around for the best quote that meets their needs. By speaking to experts such as Bollington they can ensure they get a policy that is right for them and avoid any unwanted surprises further down the line.

Ian Simpson, sales and marketing director at The Warranty Group, explained that a more active FCA has placed new pressures on traders. He said the focus now must be on achieving long-term profits rather than looking for short-term gains.

He said: “The underlying principle must be that the customer is looked after and that an audit trail can be followed to prove this has happened. Dealers who have put profit first must rethink their approach.

“For the majority of dealers, the principles will remain the same. If you have the right product in place, supported by well-trained staff, high-quality marketing material, sensible incentives and easy but thorough processes for administration, you will see a high level of sales penetration.”