FCA CAR FINANCE INVESTIGATION - RESPONSE
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Commenting on the FCA’s car finance investigation, Amanda Stretton, motoring editor at Confused.com says: “As the FCA’s review suggests, there are valid concerns with the car finance market and a need to provide drivers with transparency. Worryingly, our research found 71% of drivers are confused about the different types of car finance options available1, and murky sales tactics do little to improve their understanding.
“Only last year we commissioned a mystery shop across 100 car dealerships which found evidence of drivers being pressured into taking out finance there and then, without having the terms of the loans properly explained to them2. And further research also revealed complaints about hidden set up fees and mileage limit charges.
“This is why we launched our car finance comparison service3, to put the power back into the hands of the driver. Motorists can easily compare the different options side-by-side with clear instructions as to the type of finance they are buying. We also show the exact APR, so they know the total value of the loan upfront. What’s more is drivers can actually secure their finance before walking into the dealership, giving them the cash-buying power to negotiate an even better deal.
“Anyone thinking about buying a car using finance should visit our guide to get clued up on the pros and cons of the options available.”
- These figures are from a separate Opinium Research LLP poll commissioned by Confused.com, which questioned a 2,004 person representative sample of Britons, 70% of whom were regular drivers. The research was conducted between 8 and 10 February 2017.
- Confused.com commissioned research agency PCP to conduct a mystery shopping exercise at 100 second hand car dealerships across a range of UK locations. The participant group consisted equally of men and women. The experiment was conducted between 13 and 27 March 2017.
- Launched in February 2017, Confused.com’s car finance comparison service shows customers the exact APR as well as the likelihood of acceptance on representative APRs.