New scheme puts car buyers in the driving seat

Latest figures from the Finance & Leasing Association (FLA) show that 53 per cent of all new cars are bought using finance sold by motor dealerships.

The FLA has launched a new ‘top tips' website to help guide car buyers to the best finance deal for them. A brand new certification scheme for motor dealerships will also be launched to increase consumer confidence in finance.

From 1 August, car buyers will be able to review impartial advice on buying a car from a dealership at financingyourcar.org.uk. The site is designed to give clear, helpful guidance on motor finance options, so that consumers can confidently discuss their requirements when they go into a car dealership.

A new certification scheme will be launched at the same time, which awards dealerships who have voluntarily raised the standard of knowledge of their staff who talk about finance to customers. The FLA's Specialist Automotive Finance (SAF) initiative is based on a competence test for individual showroom staff. SAF Approved is awarded to dealerships and dealer groups where all staff have reached the required standard.

Branded material in showrooms, including a wall plaque, will help customers to identify SAF Approved dealers. Employees will benefit from the latest information on finance products and related regulation, which will help them to guide car buyers to the product that best meets their needs. To become SAF Approved, dealers must adhere to the FLA's SAF guidance note which requires them to act fairly, reasonably and responsibly with all customers. Over 6,500 industry employees have already registered for the existing SAF competence test including employees from 15 of the top 20 dealer groups. SAF Approved will be available from 1 August and many dealerships are preparing to voluntarily apply for the new status.

Paul Harrison, Head of Motor Finance at the FLA, said: "Buying a new car can be a daunting experience. Our new website and SAF initiative will put buyers in the driving seat. The Financing Your Car website will give people more information about the finance options available to them before visiting a showroom. Once in the showroom, SAF Approved will give buyers added comfort that staff can advise them on the deal that best meets their needs. Dealers that apply for SAF Approved are voluntarily adopting the SAF guidance note and the consumer protection it affords. As more and more dealers become SAF Approved, I hope it will become a kite-mark for improved standards for consumers."

Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), said: "The SAF scheme should have a positive impact on the sale of finance in car dealer showrooms, while at the same time providing recognition for the standard of care provided by dealer staff in this area. This is good for consumers, and good for dealers, and the RMIF fully supports the initiative."

Speaking of the benefits SAF offers employees and customers, Paul Bentley, Group Finance and Insurance Director, for Lookers PLC - one of the largest dealer groups in the UK - said:

"The SAF competence test has provided the ability to test the finance knowledge of our employees, whilst confirming that our teams have the correct skills, competence and expertise required to confidently offer all our customers a professional and concise explanation of all matters related to the sale of finance. Completing this exercise has been a timely reminder to our sales staff as to how valuable it is to understand all the different finance products and legal requirements involved to offer accurate advice to customers when providing finance."