The Financial Conduct Authority aim to protect and enhance the integrity of the UK financial system and RB Prestige work within those guidelines to ensure that car buying clients are given every chance of making an informed decision, very much with the future in mind.
The concern with things like this is that it stops everything being fun for both the client and the dealer. You need to be sure that, while enjoying the new car experience, it isn’t hiding a multitude of problems that could be presenting themselves to you much further down the line. So, we try and lift the fog of the FCA as much as possible, enabling every client, whether buying a Ford or Ferrari, to enjoy their car even more because they CAN see the road ahead.
On March 4th, the FCA published its long-awaited review on motor finance and we are going to address a couple of the key issues for you to bear in mind when you purchase your next car.
Commission arrangements
The FCA report was in no doubt that dealerships having discretion to adjust the interest rate per client creates a ‘risk of harm’ to customers. We are all trying to run a business, but please be sure that you are not paying more for your car just because the dealer needs/wants to earn finance commission to pay for that month’s bills. That shouldn’t be your concern.
Sufficient, timely and transparent information
The FCA is concerned that too often there can be shortcomings in the quality of pre-contractual disclosure and explanations required by existing regulation. Basically, everyone is so wrapped up in how much it costs now that they forget or fail to highlight eventualities or circumstances that may affect the client during or at conclusion of their finance deal.
The FCA introduced the need for pre-contract disclosure SECCI (the Standard European Consumer Credit Information) form to be provided ‘in good time’ before a credit agreement is made. This should include; cash price, key credit details and costs, including the total amount payable, interest rate, APR, default charges and any other costs. In the case of PCP and other HP, this would include the cost of acquiring ownership of the vehicle at the end of the agreement. Make sure you get and read this.
We have heard stories of dealers telling clients that they can hand back a car half-way through a four-year PCP. While this is an “option”, subject to certain important conditions, they fail to mention the affect this will have on you, the client.
You must be confident enough to ask, “what if” and the supplier should answer your questions with honesty and clarity. If you are in any doubt, then please do not sign anything.
Here at RB Prestige, we proudly supply all makes of new and used cars, but our key strength is supplying and advising on the financial options to fund your next, first or dream car. Our objective is to supply you with cars for years to come. Not to make as much as we can now on the basis that you can afford it or, even worse, we won’t be around when you come to change and find out you are in a bad position. We care about your future as much as our own. Who knows what is around the corner? So, give yourself at least half a chance and make sure you speak with the team at RB Prestige. We are happy to help even on cars or finance you are obtaining from your own dealer. We would rather have you in a position to make an informed decision elsewhere than be in a bad position in the future. No tricks or catches, our business was built to combat dealers taking advantage of clients.
If you are considering a change, about to make one, or indeed want to ask anything about your next, first or dream car deal, then please call RB Prestige before it’s too late!
CONTACT
t. 01202 878 188
w. www.rbprestigecars.uk
a. RB Prestige Cars, 270-272 Ashley Road, Parkstone, Poole, BH14 9BZ
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