With new Financial Conduct Authority (FCA) rules now firmly in place aiming to clamp down on dealerships selling finance packages to consumers that benefit them rather than the customer, motorists are calling for more transparent financial advice, tailored to them and their circumstances.
The FCA now discourages any dealership selling motor finance options from selling finance based on commission and to instead sell deals that best suit the individual customer’s circumstances.
Research from BuyaCar revealed that motorists are now demanding more transparency, and calling for clear advice, free from jargon. One in two motorists would prefer salespeople to actively suggest opting for a different car or indeed finance package on the grounds of affordability and only one in ten resenting suggestions that a cheaper option might be best for them.
Further research found 32.6% of customers of mostly traditional car dealerships believed car finance options were ‘completely clear’ still, many remain confused about options available to them and one in three ignore the advice of sales teams in dealerships completely.
The team at BuyaCar focus on advising and helping customers rather than selling to them and wanted to conduct research to understand the experience of car buyers in the typical car purchase scenario. As one in four people prefer to pay cash for their cars, the rest of the motorist population typically will use a finance product to fund their purchase.
Only one in ten would be offended if sales teams suggested a cheaper alternative finance product and 47.8% would be particularly glad of the honest advice, with the aim to find a package more suitable for them.
It’s clear to say motorists want to see an increase of simple advice throughout the car purchase journey. 39.6% of car finance buyers are uncertain about the jargon used when dealerships are describing the different financing options available to them.
Andy Oldham, Chief Executive of BuyaCar.co.uk, said: “The eye-watering numbers involved in financing used car purchases in the UK show just how high the stakes are for everyone involved in used car sales – and yet our research shows that many people still want better, clearer advice.
The need for transparent, friendly, honestly helpful advice could not be underlined more effectively than the fact that only one in ten buyers would be offended if their ability to afford a particular deal was discussed with them, while nearly 40% openly admit that they aren’t sure they understand their options as clearly as they want to.
The fact that nearly one in three people say they tend to ignore the views of car salespeople also highlights the need for a different, more helpful and advisory, approach to the process of changing their car with real confidence.
We have identified that confidence is the key to a happier car-buying experience and the foundation for confidence is receiving the right help to understand exactly what you are signing up for when you finance your car.”