One third (34%) of British consumers expect car dealers to earn commission on vehicles bought on finance, and a further 28% don’t mind so long as they’re informed, according to new research from Close Brothers Motor Finance.
This news comes as the FCA introduces new regulation for the motor finance industry, which comes into force on 28 January. The changes include banning pricing models which link dealer commission to an interest rate, and clarifying commission disclosure rules. The intention of these changes is to ensure fairer and more consistent outcomes, and increase transparency around finance for customers.
Consumers accept commission: a mere 13% of consumers don’t think dealers should earn commission when vehicles are purchased on finance, although this rises to 18% amongst millennials (age 25-39). Contrastingly, just 9% of baby boomers (55-74) think dealers shouldn’t earn commission.