Motor retail technology company said that, from a sample of more than half a million sessions of consumers using its motor finance tools, 4.3% were potentially classified as vulnerable. Of these, almost one in five (17%) were successfully signposted to third party and lender links such as support lines.
This was the best July performance since 2020, when pent-up demand for new cars was unleashed following three months of lockdown during the pandemic. Despite this continuous growth, however, the overall market year to date remains behind pre-pandemic levels.
If dealers implement Consumer Duty correctly, it will potentially create new avenues for business. That’s because it fundamentally requires detailed information to be recorded about how buyers behave and this provides greater insights, as well as providing a more structured and better-informed customer journey.
Dealers are reviewing their finance and insurance (F&I) products, processes and pricing structures to determine whether they can provide the evidence required by the FCA that they are delivering good consumer outcomes.
The new Consumer Duty aims to ensure dealerships providing financing and insurance products provide truthful information across their websites and all social media platforms. They will also have to demonstrate customer responsibility and support in terms of price and value of cars, as well as products and services offered, all of which will impact dealerships providing financial and insurance products.
In a properly constructed panel, lenders are not in opposition but meet specific needs. The prime lender, for example, will still be the first port of call and approve the same percentage of deals as they would if they were the sole provider. However, in a panel, there are a number of options to try if the prime declines, with each one offering a different degree of likelihood for approval and risk appetite.
The ability to record, review and audit all aspects of the consumer journey in one place will prove an important part of the new responsibility to “put customer needs first”.
Because of staff having to input data manually into the variety of systems in operation, vehicle information such as price and spec is mis-keyed which, if finance quotation software is in use on online marketing channels, can see dealer groups fall foul of Financial Conduct Authority regulations
Drivers who are behind with their monthly payments have been avoiding vehicles being repossessed by turning to a growing number of car buying service companies that will buy their used car online and settle all unpaid finances.
Review and update your online finance promotional activity to ensure you have a competitively priced proposition ready to capture car buyers interest as they shop around online – being conscious of financial promotion requirements
