Dealers will be looking for new ways to compensate for lost earnings, consumers are being warned, after the shock ruling that they must either disclose or drop 'secret' commissions charged on finance deals for new and used cars. Commissions paid unknowingly by customers have accounted for large chunks of profits for dealers, which have teams dedicated to growing revenue from finance and insurance deals, or 'F&I' (including GAP insurance, see box, right). For example, Penske, owner of UK dealer group Sytner, disclosed that F&I income totalled £1352 per car on average in the nine months to the end of September.
The figures, which included its US operations, show that finance and insurance generated 3.1% of its revenue but accounted for a whopping 19% of its overall gross profit. The UK court of appeal ruling at the end of last month means dealers will now have to be upfront about that commission. Experts believe dealer income will fall as consumers push back against paying commission. "From the dealer point of view, it means they need to compensate for that loss of income," said Steve Young, managing director of dealer consultants ICDP.
هذه القصة مأخوذة من طبعة November 13, 2024 من Autocar UK.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة November 13, 2024 من Autocar UK.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Poster car that went from rusty to trusty
One evening, two years ago, George Pappas was being driven down his local high street by a mate and mulling over whether to replace his Mk4 Golf diesel, a recent purchase that was boring him to death, when his girlfriend, also in the car, spotted an old BMW 3 Series at the side of the road with a 'for sale' sign in the window.
THE SEVEN-SEATER THAT VOLVO DARE NOT KILL OFF
The current-gen XC90 has been on sale since 2015 for good reason
GENESIS ELECTRIFIED G80
Where the story begins, in the Hyundai premium marque’s luxury saloon
LEXUSLBX
Can you shrink premium quality to fit an SUV this small? We now know
Rolls boss ready to 'define the next chapter'
Nine months into the job, Rolls-Royce CEO and car guy Chris Brownridge tells STEVE CROPLEY what he's learned and where the firm's heading
Once more, with feeling
AC Cars' recreation of the classic MkII Cobra is at first glance a faithful facsimile of a 1960s performance benchmark. SIMON HUCKNALL drives it
MERCEDES-BENZ CLE
Does a PHEV set-up work in a coupé that exudes such old-school vibes?
ANALOGUE SUPERSPORT
Lotus Elise specialist uprates 1990s icon with an eye on track days
ALPINE A290
The hot hatch is alive and well, and living in France. On both road and track, there's much to savour`
UK HANGS ON TO OLD CARS
Average car age climbs as high prices dampen demand for new models