Dealers expected to do more when selling car finance

Half of UK consumers who have financed a vehicle purchase within the past 12 months are now concerned about the affordability of their monthly payments, according to a new survey commissioned by ALPHERA Financial Services.

The survey found that 10% said they were ‘very concerned’ while a further 40% said they were ‘somewhat concerned.’

The survey also showed that unease about affordability is more widespread among younger car buyers, with 55% saying they were ‘somewhat concerned’, compared to just 16% of those aged 65 years and over.

A significant 43% of respondents said that, when considering affordability, the dealer did not encourage them to changing economic circumstances when taking out the new finance agreement.

However, 66% believe the dealer has a responsibility to discuss repayment obligations, 58% believe dealers should explain terms and conditions and any additional charges, and 31% say the dealer should state whether the salesperson is qualified or accredited to sell a car finance package.

Kirk Franks, head of national sales at ALPHERA Financial Services, said: “These findings suggest that the cost-of-living crisis is still being keenly felt by many car buyers, with inflation, rising interest rates and higher fuel costs impacting affordability. The survey also highlights the importance of dealers ensuring, fair value and transparency – which our own partners have been doing in line with new Consumer Duty.”