JudgeService’s recent study reveals that the majority of car buyers express contentment with their finance deals obtained through dealerships, despite ongoing scrutiny from the Financial Conduct Authority (FCA). The FCA has been investigating discretionary commission arrangements, which were banned in January 2021, along with a recent mis-selling campaign launched by Money Saving Expert, led by Martin Lewis.
Money Saving Expert reports a significant influx of car finance complaint letters, totaling 1,080,000 submissions since February 6. With approximately 30,000 complaints received daily, consumers could potentially recoup at least £480,000,000, as over 25% of complaints involve multiple agreements. Notable among the most complained-about lenders are Black Horse, Volkswagen Financial Services, and Stellantis Financial Services.
Despite these challenges, data gleaned from 212,986 customer questionnaires completed between 2020 and 2023 indicates a high level of satisfaction with dealer finance sales. In 2020, 93% of buyers surveyed expressed satisfaction with the explanation provided by dealership staff regarding available finance packages, a figure that increased to 91% in 2020. Similarly, satisfaction with the explanation of paperwork and documentation related to finance rose from 93.5% to 95%.
Moreover, buyers’ satisfaction with the attitude of sales staff during the purchasing process saw an uptick from 95.8% to 97%.
Neil Addley, managing director of JudgeService, highlights the significance of these findings: “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.”
Addley emphasizes that many car buyers are informed consumers who prioritize fair and affordable finance deals. Despite the attention on potential mis-selling, satisfied customers may seek compensation, adding complexity to the current landscape.
