The Finance and Leasing Association’s
(FLA) kite-mark programme Specialist Automotive Finance (SAF) met
with encouragement when presented to an all-party group in
Westminster, backed by the Trading Standards Institute
(TSI).
Stephen Lloyd MP, vice-chairman of the
All-Party Parliamentary Group on Trading Standards, was encouraged
by what appeared to be a successful process of
self-regulation.
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“Where self-regulation is working, we
need to sell it to spread the good word,” he said. “Self-regulation
endorsed by the TSI is absolutely essential. Where we have a strong
model I would be very much steered by the TSI and keen to put my
back behind this.”
Ron Gainsford, chief executive of the
TSI, addressed the group, alongside FLA head of motor finance Paul
Harrison and board member Doug Moody, saying the motor industry had
tried for 30 years to introduce measures of this kind but that the
SAF scheme was “only as successful as those who buy into
it”.
Gainsford added that SAF was both “a
positive” and marked “a sea change in the industry” as tough times
prompted competitiveness among dealers to demonstrate competence to
“increasingly discerning and informed customers”.
Moody echoed the sentiment: “Perception
of motor dealers has been historically poor therefore there is a
huge advantage in promoting good practice at
point-of-sale.”
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By GlobalDataHarrison introduced SAF to the meeting
as “a long-term initiative with much work to be done” but as one
that had been signed up by three-quarters of the 30 biggest
dealership groups, which account for “60 to 65%” of the UK market
according to Moody.
He said the level of penetration had led
to more than a million page views of the independent dealership
website
www.financingyourcar.org.uk which lists SAF-approved
dealerships.
Questioned by Lloyd, Stephen Sklaroff,
director general of the FLA, expressed concern that, should an
FSA-style body regulate the consumer credit market, as is feared
following proposals for the new Financial Conduct Authority, space
should be ensured for self-regulation of the motor finance
industry.
“Self-regulation is better and cheaper
than statutory regulation, when it works,” agreed Lloyd. “If we’re
going to have space for self-regulation we need to sell it to
consumers and dealers.
“If you’ve already got 65% of the
market, that’ll drive out the cowboys.”
Juliana Campbell of the Financial
Ombudsman Service was also in favour of the scheme: “Anything that
aids selling a product with correct understanding and raises
standards, we support.”
“What more could you ask for?” said
Moody speaking to Motor Finance after the encouraging meeting. “We
want to get SAF to a point where people say ‘I’ll only buy a car
through a SAF-appointed dealer.”
richard.brown@vrlfinancialnews.com
