The latest FCA consultation paper announcement marks the move from traditional motor finance commission models – which incentivise the dealer or broker to raise customer interest rates in order to get higher commissions – to an approach that provides more positive outcomes to car buyers. As seen earlier this year, the FCA wants to make wholesale changes to the way in which the motor finance commission model operates. The way in which commission has previously been calculated will undergo a significant change. Martin Hill, managing director of automotive fintech company DealTrak, looks at the longer-term implications for the automotive sector, and why those operating within the F&I space should buck the trend.
Oct 16, 2019
The latest FCA consultation paper announcement marks the move from traditional motor finance commission models – which incentivise the dealer or broker to raise customer interest rates in order to get higher commissions – to an approach that provides more positive outcomes to car buyers. As seen earlier this year, the FCA wants to make wholesale changes to the way in which the motor finance commission model operates. The way in which commission has previously been calculated will undergo a significant change. Martin Hill, managing director of automotive fintech company DealTrak, looks at the longer-term implications for the automotive sector, and why those operating within the F&I space should buck the trend.
|
The Financial Conduct Authority (FCA) is consulting on plans to ban the way in which some car retailers and other brokers in the motor finance sector receive commission.
Currently, some motor finance brokers receive commission which is linked to the interest rate that customers pay. The broker can set that rate and the FCA found that the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests.
The FCA estimates that changing this model would save customers £165 million a year by removing the financial incentive for brokers to increase the interest rate that a customer pays; lenders will also have more control over the prices customers pay for their motor finance.
Oct 15, 2019
The Financial Conduct Authority (FCA) is consulting on plans to ban the way in which some car retailers and other brokers in the motor finance sector receive commission.
Currently, some motor finance brokers receive commission which is linked to the interest rate that customers pay. The broker can set that rate and the FCA found that the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests.
The FCA estimates that changing this model would save customers £165 million a year by removing the financial incentive for brokers to increase the interest rate that a customer pays; lenders will also have more control over the prices customers pay for their motor finance.
|
Finance marketplace Funding Options has appointed Simon Cureton as the company’s interim chief executive officer (CEO) to lead a growth strategy that includes international expansion.
The strategy will build on the company’s innovations around Open Banking and its recent expansion into the Netherlands.
Cureton, who was previously commercial director, will be implementing a new organisational structure for the business. He succeeds Conrad Ford, the founder of Funding Options, who stepped down from the CEO role last month.
Oct 15, 2019
Finance marketplace Funding Options has appointed Simon Cureton as the company’s interim chief executive officer (CEO) to lead a growth strategy that includes international expansion.
The strategy will build on the company’s innovations around Open Banking and its recent expansion into the Netherlands.
Cureton, who was previously commercial director, will be implementing a new organisational structure for the business. He succeeds Conrad Ford, the founder of Funding Options, who stepped down from the CEO role last month.
|
Electric vehicles are attracting a growing army of supporters who plan to adopt zero-emission technology when they renew their cars.
Among drivers planning to lease a car in the next five years, 40% would choose an EV, according to a survey carried out as part of the Mobility Monitor 2019: EV and Sustainability report from global leasing giant LeasePlan, which questioned more than 4,000 people in 16 countries worldwide.
Of the respondents planning to go electric in the next five years, 60% said a significant factor in their decision was helping to combat climate change and 43% said they wanted to improve air quality in towns and cities through lower NOx emissions. Nearly two-thirds expected reduced running costs.
Oct 15, 2019
Electric vehicles are attracting a growing army of supporters who plan to adopt zero-emission technology when they renew their cars.
Among drivers planning to lease a car in the next five years, 40% would choose an EV, according to a survey carried out as part of the Mobility Monitor 2019: EV and Sustainability report from global leasing giant LeasePlan, which questioned more than 4,000 people in 16 countries worldwide.
Of the respondents planning to go electric in the next five years, 60% said a significant factor in their decision was helping to combat climate change and 43% said they wanted to improve air quality in towns and cities through lower NOx emissions. Nearly two-thirds expected reduced running costs.
|
For all of the talk about digitalisation, servitisation, collaboration, subscription finance, circular economy, sharing assets, green leasing and other trends, how ready are European lessors to change their businesses in preparation for a new era of leasing? Proving the business case for change and then successfully delivering it was a key topic as this year’s Leaseurope Convention in Budapest, Hungary. Industry expert Julian Rose provides his thoughts on the key themes from the conference.
Oct 14, 2019
For all of the talk about digitalisation, servitisation, collaboration, subscription finance, circular economy, sharing assets, green leasing and other trends, how ready are European lessors to change their businesses in preparation for a new era of leasing? Proving the business case for change and then successfully delivering it was a key topic as this year’s Leaseurope Convention in Budapest, Hungary. Industry expert Julian Rose provides his thoughts on the key themes from the conference.
|
Nearly half of UK consumers who recently purchased a car with finance were unable to identify what type of finance deal they signed up for, according to new research by peer-to-peer lender Zopa.
The lender warns that consumers are more confused than ever about the variety of finance options available when buying a vehicle.
Zopa research found there was a £2,750 gap between the most affordable deal and the most expensive, for the same vehicle, but 90% of consumers were unable to work out which was the cheapest.
Oct 14, 2019
Nearly half of UK consumers who recently purchased a car with finance were unable to identify what type of finance deal they signed up for, according to new research by peer-to-peer lender Zopa.
The lender warns that consumers are more confused than ever about the variety of finance options available when buying a vehicle.
Zopa research found there was a £2,750 gap between the most affordable deal and the most expensive, for the same vehicle, but 90% of consumers were unable to work out which was the cheapest.
|
Networking group promotes diversity in asset finance
TSB and Vocalink announce new partnership to combat payment fraud
Cash is king for UK SMEs ahead of Brexit
UK SMEs overcome Brexit fears to seek investment for growth
