Finance Wins Amidst Regulatory Probe
12 March 2024 by Curtis Hutchinson
Data shows car buyers satisfied with finance buying experience, despite FCA probe
Most car buyers are satisfied with their experience buying finance from dealers, according to research by JudgeService.
The research was prompted by the Financial Conduct Authority (FCA) probe into the use of discretionary commission arrangements before they were banned in January 2021 and the mis-selling campaign launched last month by Money Saving Expert, the consumer website fronted by Martin Lewis.
Data from 212,986 questionnaires completed by customers in 2020 and 2023 sheds light on how overall satisfaction with dealer finance sales was high.
Last year 93% of buyers said they were satisfied with the explanation given to them by dealership sales staff of the available finance packages, up from 91% in 2020. While satisfaction with the explanation of paperwork and documentation related to finance increased from 93.5% to 95%.
Buyers were also asked to rate their satisfaction with the attitude of sales staff during the buying process, this increased from 95.8% to 97%.
“Despite the noise generated by the FCA probe and Money Saving Expert’s compensation campaign, our research reveals the high level of customer satisfaction related to finance purchases both before and after the ban on discretionary commission arrangements,” said Neil Addley, managing director of JudgeService.
“Our dealer clients regularly access our finance satisfaction reports and receive a notification if a customer isn’t happy.
“What is being overlooked is that many car buyers are also savvy consumers, they understand that dealers earn commission on the finance they sell; they are more focused on agreeing finance deals that are fair and affordable.
“However, because of the ballyhoo around possible mis-selling, many of these customers will now be looking to be compensated for something they were satisfied with,” he said.
Further details and comments available from Neil Addley on 07795 665927 or neil@judgeservice.com.
About JudgeService
Launched in 2011 by Neil Addley, JudgeService is the UK’s only customer review platform developed exclusively for the car retailing sector. By ensuring all reviews are verified and genuine, JudgeService builds a solid foundation of trust and respect between customers and sellers enabling car retailers to actively manage their online reputations.
JudgeService shares granular insight reports with dealers to help them identify opportunities to improve customer satisfaction levels, with many achieving 100% recommendation scores. Based in Harrogate, North Yorkshire, JudgeService has published over 1 million customer reviews and is used by over 1,000 franchised, independent and car supermarket sites across the UK.
Issued by Curtis Hutchinson Communications
