The Financial Conduct Authority (FCA) has now implemented a ban on all car finance commission deals which allowed sales teams to earn higher rates of commission from setting their own high interest rates.  Prior to this regulation, dealerships across the country were paid based on the interest rates drivers sign up to for PCP deals resulting in higher commission for brokers, and customers losing out, signing up to poor deals

Car finance provider, Raedex Consortium has been restricted by the Financial Conduct Authority (FCA), due to concerns about finances, and ordered to stop activities.  If the FCA’s threshold conditions are met, Raedex will be able to continue to trade, however until then Raedex cannot provide any new car leases, but all existing leases will remain.  Raedex is part of an investment scheme, Buy 2 Let Cars, unauthorised by the FCA,

In research conducted by LeaseLoco, motorists choosing to use PCP as their finance model for a new vehicle can often end up paying at least double the amount when compared to the same car on a lease deal.  When assessing deals on brand-new cars, examples looked at by the firm include over £5,000 saving on a Ford Focus and more than £6,000 on a Mercedes A-Class.  Commenting on these findings,

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