Car finance/dealer commission: landmark court case

[FROSTYBALLS]

Landmark court case may have immediate implications for some car companies (not just Honda as in article) and customers - see following article:

https://cardealermagazine.co.uk/publish/honda-pulls-car-finance-and-delays-customer-handovers-in-wake-of-close-brothers-ruling/309334

 

[Cyker]

Are Honda doing that because the ruling is retroactive? (Which would make all existing car finance agreements technically illegal...??)

[FROSTYBALLS]

Think Honda are playing it safe. Don't know whether Toyota Finance are still paying commission on finance agreements to dealers (up to 2021 they were), but it could have implications for agreements which have just been agreed.

[FROSTYBALLS]

Updates:

https://cardealermagazine.co.uk/publish/car-finance-pauses-as-banks-figure-out-legal-implications-who-has-stopped-lending/309365

https://cardealermagazine.co.uk/publish/short-term-headache-or-genuine-game-changer-what-mounting-finance-crisis-means-for-dealers/309357

[Cyker]

Wow how dodgy must these lenders have been to all just pull out and stop underwriting finance just because they don't want to disclose commissions!?  

Not good news for dealers as I feel the commission is a major source of income for a lot of them, if our various Toyota buying experiences are anything to go by!

[Flatcoat]

On 10/29/2024 at 4:09 PM, Cyker said:

Wow how dodgy must these lenders have been to all just pull out and stop underwriting finance just because they don't want to disclose commissions!?  

Not good news for dealers as I feel the commission is a major source of income for a lot of them, if our various Toyota buying experiences are anything to go by!

Nothing dodgy about it, ridiculous comment. When legal rulings such as this are made the organisations affected have to ensure they become compliant with any new procedures. No where has anyone said they don’t want to disclose commissions but bear in mind it is akin to you telling me and the world your wage. Would you? I suspect not. Anyone who thinks sales staff work for the sheer love of selling and as a charitable past time are living in cloud cuckoo land. No one but no one is forced to buy anything from anyone. If you don’t like the deal then get up and walk away. Everyone is looking for something or someone to blame for every little glitch in life, when they should look in the mirror a damn sight more often. People who make these rulings clearly clueless with business and incentives. 

[Mark_P]

Guardian has this explainer
https://www.theguardian.com/business/2024/oct/31/car-finance-payouts-commission-payments-court-ruling

I did read that Lloyds have now scrapped Commision payments across their motor finance arm.

https://www.theguardian.com/business/2024/oct/30/lloyds-suspends-commission-payments-after-seismic-ruling-on-uk-car-finance

[Eddie G]

1 hour ago, Flatcoat said:

Nothing dodgy about it, ridiculous comment. When legal rulings such as this are made the organisations affected have to ensure they become compliant with any new procedures. No where has anyone said they don’t want to disclose commissions but bear in mind it is akin to you telling me and the world your wage. Would you? I suspect not. Anyone who thinks sales staff work for the sheer love of selling and as a charitable past time are living in cloud cuckoo land. No one but no one is forced to buy anything from anyone. If you don’t like the deal then get up and walk away. Everyone is looking for something or someone to blame for every little glitch in life, when they should look in the mirror a damn sight more often. People who make these rulings clearly clueless with business and incentives. 

Reminds me how much am not missing going into car show rooms 😆 am just off to kiss my long term Toyota Yaris again in the hope i don't ever see a main dealer show room ever again 😁

[Flatcoat]

My ‘ex’ was in car sales and too often was treated like a piece of 🐶💩by customers. And that is before the lies told by prospective buyers about the car they were trading in. It works both ways.