F&I Management & Training

Tuesday, April 1, sees the Financial Conduct Authority take charge of a raft of consumer regulation associated with car retailing. It takes over from the Office of Fair Trading, but is much more than a swap from one regulator to another.

Retailers will be obliged to ensure that customers are not put at a disadvantage by any sales reward scheme operating on products they may be offered. Auto Retail Networkand Black Horse recently held a webinar on the subject, which you can view.

Christopher Woolard, the FCA’s director of policy, said the evolution of the UK consumer credit industry has outpaced its current regulation. “That is why we find ourselves where we are today - with the FCA on the cusp of taking responsibility for some 50,000 consumer credit firms."

While the changes have understandably caused concern for some, the view of industry experts, Compliancy Services, is that car retailers aren’t a priority for FCA attention, so long as they are in compliance with previous OFT rules. The new regulator’s focus is more towards payday lenders and debt collectors.

DATED: 31.03.14

FEED: ARN

March registrations are expected to pass the 400,000 barrier, according to a senior executive within a top-20 car manufacturer.

Speaking exclusively to Auto Retail Agenda, the executive said: “The daily registrations are running ahead of last year, but even with a few calendar registration days to even out, March should be ahead of the SMMT’s prediction and be more than 400,000 cars.”

The SMMT will announce official figures for March on Friday. Earlier in the month chief executive Mike Hawes said increasing economic activity and the arrival of the 14-plate on March 1 should see growth already experienced in 2014 maintained.

Sales for January and February increased by 6.1% over the same period last year, to 223,928. March is the top-selling month and last year saw 394,806 registrations. If the year’s growth rate so far holds at around 6%, then a total in excess of 418,000 registrations is possible.

But while strong customer offers including zero- and low-rate finance have kept car purchasing attractive for private buyers, there are indications elsewhere across the broad economy that future growth may be challenged

Last week the Confederation of British Industry (CBI) said its growth indicator showed the economy was currently expanding at its slowest rate for eight months. However, the CBI said members remained optimistic and that it expected consumer confidence to increase through 2014. And those sentiments are reflected in returns from the High Street. Retail sales during February jumped by 1.7% - three times the rate expected by City economists.

The SMMT will announce new-car registrations for March this coming Friday, April 4.

DATED: 31.03.14

FEED: ARN