Friday, May 04, 2007
Car dealers reject finance sales
Car dealers are shunning insurance sales because of government over-regulation.
The NFDA warned that since the introduction of the Financial Services Authority regulations in 2005, which govern the sale of insurance related products, the number of dealers selling finance has plummeted.
According to an NFDA survey, the number of dealers with full FSA authorisation has dropped from 76 per cent in 2005 to 54 per cent currently.
The percentage acting as insurance introducers - the least regulated option – has risen from 4 per cent to 17 per cent over the same period.
“The complexity and cost involved in being authorised is clearly putting many dealers off,” said Louise Wallis, the NFDA’s head of business development.
“Many in the motor trade believe that they should never have been included in the regulations in the first place.”
DATED: 04.05.07
FEED: MT
The NFDA warned that since the introduction of the Financial Services Authority regulations in 2005, which govern the sale of insurance related products, the number of dealers selling finance has plummeted.
According to an NFDA survey, the number of dealers with full FSA authorisation has dropped from 76 per cent in 2005 to 54 per cent currently.
The percentage acting as insurance introducers - the least regulated option – has risen from 4 per cent to 17 per cent over the same period.
“The complexity and cost involved in being authorised is clearly putting many dealers off,” said Louise Wallis, the NFDA’s head of business development.
“Many in the motor trade believe that they should never have been included in the regulations in the first place.”
DATED: 04.05.07
FEED: MT
