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.
Bu hikaye Autocar UK dergisinin November 13, 2024 sayısından alınmıştır.
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Bu hikaye Autocar UK dergisinin November 13, 2024 sayısından alınmıştır.
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