Fca change

[CCC 31]

Anyone seen this? Any idea when it will come in?

https://www.theguardian.com/money/2019/oct/15/car-finance-buyers-fca-commission-brokers

[David Horgan 564]

Might make main dealers and super mkt NEED to earn on the metal instead of ripping the heart out of Finance deals and putting bad taste in customers heads .

If they have to earn money on Metal us indies will shine through maybe , lets hope so . 

[awc1000 93]

Final rules due late 2020, and presume implemented shortly after, i guess finance commission will revert to a flat fee or dressed up as something else, either way its bad news for supermarkets and some used dealers who's business model is not based on a car's margin, one supermarket who i used to supply has £200 margin across a lot of their cars

Regards new car sales, the manufacturers could be holding the cards here, already plotting how to halt the current decline in new car sales they are the only ones with options, they could introduce % manufacturer owned finance, pay dealers more back end bonus instead of com's, reduce factory list prices making pcp cheaper again, none of these are options for supermarkets.

Cant see how the supermarkets are going to avoid the incoming pain, casualties are inevitable, best scenario for us used dealers will be increased new sales, if not the franchises will have an even keener eye on used car profits which is never good news for the rest of us, lets hope they do well on new and loose interest in their used car satellite sites which will no longer be bringing in high commissions after the fca change, if all that pans out there could even be some cheap cars for us to buy again.

 

 

 

[Casper 272]

1 hour ago, awc1000 said:

Final rules due late 2020, and presume implemented shortly after, i guess finance commission will revert to a flat fee or dressed up as something else, either way its bad news for supermarkets and some used dealers who's business model is not based on a car's margin, one supermarket who i used to supply has £200 margin across a lot of their cars

Regards new car sales, the manufacturers could be holding the cards here, already plotting how to halt the current decline in new car sales they are the only ones with options, they could introduce % manufacturer owned finance, pay dealers more back end bonus instead of com's, reduce factory list prices making pcp cheaper again, none of these are options for supermarkets.

Cant see how the supermarkets are going to avoid the incoming pain, casualties are inevitable, best scenario for us used dealers will be increased new sales, if not the franchises will have an even keener eye on used car profits which is never good news for the rest of us, lets hope they do well on new and loose interest in their used car satellite sites which will no longer be bringing in high commissions after the fca change, if all that pans out there could even be some cheap cars for us to buy again.

 

 

 

Interesting i guess this is why the supermarket buyer can pay a premium at auction because of finance margins which may also help us if there is less margin in the finance deal  for them it may push the prices down to where the margins are per bonnet not per finance deal will have to wait and see