Car and van buyers have been blocked from collecting new models this week for 1 November as UK finance firms hold back monies due to dealers.
It follows a Court of Appeal decision last week which outlawed undisclosed commission payments.
Dealers were unable to allow collections or deliver cars as finance companies paused paying out on business already written and refused to accept new business.
Volkswagen Group has continued to pay out on finance deals, but BMW has stopped, Honda has changed its terms and Stellantis has stopped commission payments to remain on the right side of the law.
Honda Financial Services in a statement said, “Following Friday 25 October’s Court of Appeal judgment regarding motor finance commissions cases, Honda Financial Services took the decision to pause funding finance business in order to assess this ruling. We apologise for any impact that this may have had on our customers and retailer partners during this time.
“We have now had time to review the situation and have been able to put in place interim measures to allow us to resume the funding of some finance business.
“If any of our customers have questions, or have been impacted by this, please contact Honda Financial Services on: 0345 128 8908.”
JLR has been asked to comment on its arrangements with Black Horse finance, which holds the luxury brands’ book, but the car maker has not responded.
Last week, the Appeal Court ruled in favour of three customers which said ‘a broker could not lawfully receive a commission from a lender without obtaining the customer’s fully informed consent to the payment’.
This means, as it stands, car dealers cannot receive commission payments for arranging finance without customers knowing the full details and the markup they make on each sale.
Car finance firms are rushing through new contracts so car dealers can disclose commission payments they receive to customers and get their approval for it ahead of handing cars over.