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Car buyers satisfied with finance buying experience despite FCA probe

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%.
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Neil Addley

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March 12, 2024

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%.

Neil Addley, Managing Director of JudgeService, said: “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. 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.”

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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