More customer choice when it comes to point of sale finance could be needed if dealers are to escape further FCA regulation, technology provider iVendi has warned.
James Tew, chief executive officer at iVendi, said that the situation regarding motor finance is very similar to that which could be found when the FCA decided to take action over GAP.
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He said: "The FCA’s actions on GAP were designed to tackle a perceived lack of customer choice. What would happen if the same approach was applied to point of sale motor finance?
"The fact is that most dealers currently offer only a very limited choice, some simply sticking with one product from one lender. If we are to head off any potential FCA intervention, we need to start offering more.
"In our view, dealers need to ensure that there are genuine options for car buyers, with different types of products and also different interest rates providing for those with different risk appetites."
Tew said that transparency and information were crucial, allowing customers to be presented with a range of informed choices in a neutral manner.
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By GlobalData
