A record year for the Specialist Automotive
Finance (SAF) scheme has brought praise for motor dealers from the
Finance & Leasing Association (FLA).
The SAF kite-mark programme designed to
promote understanding of car finance for dealers, and thus the
public, now includes four-fifths of the 30 largest dealership
groups in the UK. Most recently, 110 employees across the 23 sites
of the RRG Group (also known Marubeni) were certified
SAF-approved.
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Paul Harrison, Head of Motor Finance at the
FLA, said: “The motor finance market is performing well in
difficult times, but customers are savvy when shopping for
expensive purchases and will look out for dealers who offer the
best service levels.
“People can review the car finance options
available to them at www.financingyourcar.org.uk,
and search for their nearest SAF-approved showroom on our dealer
directory.”
Roundtables held by Motor Finance to
bring together figures from the industry have, however, shown
worries over the penetration of the scheme with some dealers
while others have said the
car-buying public are not yet aware enough of the scheme.
The online test for
dealers and motor finance company staff includes questions on
the latest sales processes and the Consumer Credit Directive, with
both individuals and dealerships eligible for accreditation.
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By GlobalDataA year of approval
RRG’s approval concludes a busy 2011 for SAF
which saw
accreditation of Arnold Clark, Marshall and Rybrook in the
summer.
The scheme also made
a noted debut in parliament in the FLA presentation
to the All-Party Parliamentary Group on Trading Standards in
October, with backing from both the Financial Ombudsman Service and
Trading Standards Institute.
The FLA believes that the maintenance of
self-governance in the car finance sector is crucial to avoid
unnecessary regulation.
The Financial Services Authority is
soon to be replaced by the Financial Conduct Authority; new
drafts of guidance from the Office of Fair Trading have just been
published, with further guidance due in 2012; and FLA director
general Stephen Sklaroff has been one of many to voice concern over
the prospect of a heavily-intermediated industry becoming regulated
under the same auspices as banking and mortgages.
Conventional ambitions
Harrison is positive the SAF scheme can help
the FLA in its aim to protect self-regulation: “2011 has been an
outstanding year for SAF, with 7,500 industry staff signing-up to
the scheme. SAF is an example of how industry action can improve
information given to consumers. We have also heard how a number of
dealerships have turned to SAF to demonstrate their motor finance
compliance to the regulators.”
Into next year, Sklaroff
set the Association and the programme ambitious targets at the
FLA’s 8th Annual Motor Finance Convention – to have four-fifths of
the 50 biggest dealer groups signed to SAF and half of all cars
sold according to its standard – but FLA board member Doug Moody
was even more bullish following his presentation to parliament: “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
