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The ban is long overdue, said debt experts, with Citizens Advice Scotland dubbing the commission"outrageous".At the moment some brokers and car retailers make a commission on the interest rate they charge customers who take out a loan to buy a car.That effectively means"brokers are rewarded for charging consumers higher rates," said Christopher Woolard, the FCA's interim chief executive.
"As motor finance options are on the up through schemes like contract purchases this is the time to make sure consumers are adequately protected against these conflicts of interests.""The interest rate should reflect the risk that the lender is taking, not how much a car salesman thinks you will pay."Banning the commission is the right thing to do, said debt campaigner Mick McAteer, co-director at the Financial Inclusion Centre.
Still better than the TV licence.
Let the buyer beware, as true now as ever it was. 👹
I walked out of a showroom last year when the salesman refused to sell a car for cash - he'd only sell if I agreed to take out finance .... since found out there's loads of 'car dealers' doing the same.
That is s why I always save and pay cash.
These car warehouses don't really have much to do with selling cars. They are there to sell you finance.
Damn another Conservatives mp analogy bites the dust
fanfare for a baby driver. we'll see, more detail on how it will work and how much one will pay. no trope intended.
ChrisHagerty another reason to avoid
Not before time.
You mean commission based sales people get paid more for making more money, and paid less for making less, well who would have thought it
Charging higher interest rates is very much like making love to a beautiful woman...
Looks like the Black Horse will have to set yet more compensation money by then!
Seen this first hand, where APR was as negotiable as the price of the car
Does anyone trust a car salesman? More online buying, less dealerships please...
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Source: TheSun - 🏆 64. / 61 Read more »