Motorists still confused by car finance advice

Motorists still don’t understand car finance advice from dealerships, despite new rules from the Financial Conduct Authority intended to clamp down on dealers focusing on commission instead the best deals for customers.

According to BuyaCar, which interviewed more than 400 customers, motorists want more transparency and independent advice from their dealers, tailored specifically for them.

Only 32.6% of people say that car finance options are already ‘completely clear’ to them, with one in three saying they routinely ignore dealership sales people’s advice anyway.

Asked how they would respond if an advisor suggested they look at a cheaper option only one in 10 of those questioned said they would be offended. But 47.8% say they would be ‘glad’ of the honest advice, particularly if it was followed by help to find a package more suitable for them.

Andy Oldham, chief executive of BuyaCar.co.uk, said: “The eye-watering numbers involved in financing used car purchases in the UK show just how high the stakes are for everyone involved in used car sales – and yet our research shows that many people still want better, clearer advice.

“The need for transparent, friendly, honestly helpful advice could not be underlined more effectively than the fact that only one in 10  buyers would be offended if their ability to afford a particular deal was discussed with them, while nearly 40% openly admit that they aren’t sure they understand their options as clearly as they want to.

“The fact that nearly one in three people say they tend to ignore the views of car salespeople also highlights the need for a different, more helpful and advisory, approach to the process of changing their car with real confidence.”