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Finance has been a big profit generator for car dealers | Image: Getty Images
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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).
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.
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