Finance commission ban/cap/ interference by FCA

[Mojo121 229]

Seems profit is still a dirty word to some?

i can only imagine this will force the focus back on margin trading but surely there will still be commissions?

https://www.google.co.uk/amp/s/www.independent.co.uk/news/business/news/drivers-to-save-1100-each-after-crackdown-on-car-finance-commissions-a9157021.html%3famp

Edited October 16, 2019 by Mojo121
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[chrishowie 14]

May lead to less people legging themselves up with finance they shouldn't get as £1100 commission on £10000 over 4 years, I'd hate to think of the APR as well.

Sounds more like capping the Amigo or same day payday high APR aspect of car finance?

[Rory RSC 596]

4 minutes ago, chrishowie said:

May lead to less people legging themselves up with finance they shouldn't get as £1100 commission on £10000 over 4 years, I'd hate to think of the APR as well.

Sounds more like capping the Amigo or same day payday high APR aspect of car finance?

Do banks not make profit from interest?

Of all the pay day lenders out there charging knee cap rates and they choose to focus on car finance. A lot of youngsters take out pay day loans and as soon as they are spotted on a credit app you get blackballed anyway.

[chrishowie 14]

6 minutes ago, Rory RSC said:

Do banks not make profit from interest?

Of all the pay day lenders out there charging knee cap rates and they choose to focus on car finance. A lot of youngsters take out pay day loans and as soon as they are spotted on a credit app you get blackballed anyway.

Very True but the way the article reads, its trying to stop rip off apr and large commission on finance, not the standard market etc.

The problem is legging people up with a pen as deposit and giving joe public a nice shiny car they cannot afford etc. Same with the American Housing recession some 10 years ago.

I wouldn't sell diesel car to a uni student who would do 3000 miles at best a year. I've talked many people out of cars if I think they are not right for them.

[Nick M.K. 574]

34 minutes ago, chrishowie said:

I've talked many people out of cars if I think they are not right for them.

I wish you were there in 2001 when I bought my first Citroen Xantia 1.8i. The private seller didn't try to stop me in any way. I have many memories with that car. Some good ones as well.  

[chrishowie 14]

1 minute ago, Nick M.K. said:

I wish you were there in 2001 when I bought my first Citroen Xantia 1.8i. The private seller didn't try to stop me in any way. I have many memories with that car. Some good ones as well.  

Hi Nick, my old friend from the Autotrader forum days

I hope you are well

[Nick M.K. 574]

1 hour ago, chrishowie said:

I hope you are well

And likewise Chris. 

Good to see you here! The old gang slowly reunites. 

[AAM90 22]

I think the forthcoming ban on DCI is a great thing. In theory this should create a more level playing field for us all.

Car Supermarkets with little or no chassis profit are earning upto 2k a car on finance commission. The only reason they earn huge amounts is by legging customers up with high rates of interest.

The supermarkets will have to alter their business model and return to earning something out the chassis.

This should help with auction prices...

[Rory RSC 596]

1 hour ago, Nick M.K. said:

And likewise Chris. 

Good to see you here! The old gang slowly reunites. 

Wheres Basil. 

[Casper 272]

13 hours ago, Nick M.K. said:

I wish you were there in 2001 when I bought my first Citroen Xantia 1.8i. The private seller didn't try to stop me in any way. I have many memories with that car. Some good ones as well.  

They weren't a bad car to be fair . We have used them as runabouts before in both petrol and diesel forms paid a few hundred from auction used them as runabouts collecting cars or going to the tip then took the scrap money when it wasn't worth the repair cost . The last of them will be nearing 10 years old now think the newest Ive seen was an 60 plate and that was a one off have seen a few 10 plates 

9 hours ago, AAM90 said:

I think the forthcoming ban on DCI is a great thing. In theory this should create a more level playing field for us all.

Car Supermarkets with little or no chassis profit are earning upto 2k a car on finance commission. The only reason they earn huge amounts is by legging customers up with high rates of interest.

The supermarkets will have to alter their business model and return to earning something out the chassis.

This should help with auction prices...

Hopefully i said much the same on the other post before coming here and noticed it being discussed 

13 hours ago, chrishowie said:

Hi Nick, my old friend from the Autotrader forum days

I hope you are well

Noticed you have been here a while Chris but posting more now nice to read your and enjoying your input enjoyed the one about your father in law and the tvs hope to see you around here often 

good luck all the best  

Edited October 16, 2019 by Casper

[Arfur Dealy 823]

The change will be the dealer won’t be able to set the rate so that they earn more commission, this clearly is in the best interest of the consumer.

At least now the consumer will know they will be getting the best deal available from that said dealer, this surely will make the market fair.

You’ll still be earning your commissions, the FH still have to lend, all its doing is making it open and transparent. The consumer will still end up paying the same dependent on their rating and ability. 

[chrishowie 14]

9 hours ago, Casper said:

They weren't a bad car to be fair . We have used them as runabouts before in both petrol and diesel forms paid a few hundred from auction used them as runabouts collecting cars or going to the tip then took the scrap money when it wasn't worth the repair cost . The last of them will be nearing 10 years old now think the newest Ive seen was an 60 plate and that was a one off have seen a few 10 plates 

Hopefully i said much the same on the other post before coming here and noticed it being discussed 

Noticed you have been here a while Chris but posting more now nice to read your and enjoying your input enjoyed the one about your father in law and the tvs hope to see you around here often 

good luck all the best  

Thanks Casper! I contributed a lot on the autotrader forum (RIP) and was classed as a 5 star contributor etc. I did enjoy the camaraderie and chewing the fat about all the motortrade problems. Nick and Umesh being great contributors and also lifting what can be a very stressful trade!

However on this one, I do sometimes feel it can be like a pack of wolves attacking less knowledgeable people so have just read rather than contributed.

 

Thanks for the welcome again Casper

[Casper 272]

3 hours ago, chrishowie said:

Thanks Casper! I contributed a lot on the autotrader forum (RIP) and was classed as a 5 star contributor etc. I did enjoy the camaraderie and chewing the fat about all the motortrade problems. Nick and Umesh being great contributors and also lifting what can be a very stressful trade!

However on this one, I do sometimes feel it can be like a pack of wolves attacking less knowledgeable people so have just read rather than contributed.

 

Thanks for the welcome again Casper

Well mate ill always help anyone in anyway I can with advice etc here . I know you have been at the game a while but get your point my view is every one has to learn about things not just in the trade but life in general 

theres a lot of real nice guys so stick with it 

again good luck