Over half (57%) of brokers have said the switchover to the Financial Conduct Authority (FCA) regulatory regime has had no impact on their business volumes, according to a survey by Paragon Car Finance.
A total of 74% of brokers told Paragon the FCA switchover had not made it more difficult for customers to obtain finance, 83% said it had not limited the variety of products on offer and 74% said it had not made the process for them applying for finance more complicated.
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Although 35% of respondents said the regulatory switchover had actually boosted volumes, 70% did say it had reduced the number of dealers offering finance.
A total of 61% also agreed it had resulted in new commission models they found difficult to understand.
This came after the FCA launched a thematic review in remuneration in the consumer credit industry.
Julian Rance, head of Paragon Car Finance, described the answers, which involved a survey of 30 brokers, as reassuring, despite the concerns over dealers and commissions.
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By GlobalDataRance said: "The overwhelming sentiment is one of optimism. Confidence amongst car buyers is buoyant.
"Overall, 60% of brokers describe car buyer confidence as strong or very strong, 40% say confidence is stable and no brokers report confidence as weak."
The survey also revealed a demand for a greater availability of products for older vehicles: 48% of brokers said this was something they would like to see.
This is compared to 43% who said they’d like to see more products for commercial vehicles, 30% who wanted to see more variable rate finance products and 26% who wanted to see more products for near prime finance and personal leasing.
A sizable minority (39%) said that over the past 12 months the replacement cycle had shortened, while 48% said it had remained the same.
Rance said: "Motor finance brokers provide a vital service, linking lenders to car dealers, specialist vehicle retailers and car buyers in order to source vehicle finance for the full spectrum of consumers and businesses across the UK. Active in the market each and every day, they are uniquely placed to comment on both the demand for and the supply of finance."
