Motor Dealers & Vehicle Finance

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About This Sector

If your dealership offers finance, arranges finance through lenders, or even just introduces customers to a finance provider, you are carrying on regulated activity and you need FCA authorisation to do it legally.

For most dealers, compliance is a distraction from selling vehicles. That is exactly why motor dealers work with us: our ex-FCA consultants handle the authorisation process end-to-end, so you can offer finance compliantly without becoming a part-time compliance officer.

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Common Challenges for Motor Dealers

Knowing which permission you need

Most dealers need credit broking permission rather than full lending permission, but the lines between limited permission, full permission and ancillary activity confuse even experienced operators.

Application complexity

The FCA expects a coherent business plan, compliant financial promotions and evidence of systems and controls, from a business whose expertise is vehicles, not regulation.

Increased scrutiny of motor finance

Commission arrangements and customer outcomes in motor finance are under the regulatory microscope, and the FCA expects dealers to demonstrate fair treatment of customers.

Staying compliant after authorisation

Regulatory reporting, Consumer Duty obligations and financial promotion rules continue long after approval, and lapses put your permission, and your finance income, at risk.

How We Help

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Credit Broking Authorisation

We prepare and submit your FCA application, from scoping the right permissions to drafting the regulatory business plan.

Consumer Credit Authorisation

Full support for dealers whose activities go beyond broking, including lending and hire.

Staying compliant after authorisation

Regulatory reporting, Consumer Duty obligations and financial promotion rules continue long after approval, and lapses put your permission, and your finance income, at risk.

How It Works

We start with a free consultation to understand how your dealership offers finance today, and how you want to offer it in future. From there, we identify the exact permissions you need, prepare a complete application pack and manage the FCA process through to authorisation. Once you are authorised, we can stay on as your compliance support, so the regulatory side of the business never slows down the commercial side.

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Our Clients Say

Fantastic service and support! I cannot recommend enough, Alumni Compliance were always on hand and ensured our journey through a very complex process was simple and straight forward.

William Colthart, Director

Our Clients Say

Alumni is a professional firm. They supported us all the way and were very responsive. We managed to get authorised by the FCA quicker than planned. Definitely recommended for any firm looking for FCA Authorisation or compliance in general.

Mohammed Ragab, Director, AMS Cars Ltd

Frequently Asked Questions

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Yes, in most cases. If your dealership introduces customers to finance companies for PCP, hire purchase or other regulated car finance agreements, you will normally need FCA authorisation. You may also be able to offer finance through an appointed representative (AR) arrangement. We can help you establish which option is right for your dealership.

Most motor dealers arranging PCP, hire purchase or regulated vehicle leasing through a finance provider need credit broking permission. You may need additional permissions if you help customers settle existing finance when part-exchanging vehicles or hire out vehicles yourself. We can review how your dealership operates and identify exactly which permissions you need.

Many motor dealers typically qualify for Limited Permission when arranging finance to help customers buy vehicles the dealership owns. Full Permission would normally be required if you arrange finance for other purchases or carry out wider finance activities. The right option depends on how your dealership operates. We can help you establish this before you apply.

Secondary credit broking simply means that arranging finance is an additional service alongside your main business of selling vehicles. For example, if your dealership sells a car and introduces the customer to a finance company, this is usually secondary credit broking. Many dealerships carrying out this activity qualify for Limited Permission, depending on their arrangements.

Yes. Your dealership may be able to offer car finance as an appointed representative of an FCA-authorised company instead of obtaining its own authorisation. The authorised company takes regulatory responsibility for the activities covered by the arrangement. We can help you understand the differences and decide which approach best suits your dealership.

If your dealership receives commission for arranging car finance, you need to be open with customers about it. Where commission could influence your recommendations or the customer’s decision, you must explain the arrangement and how it could affect what the customer pays, clearly and before they sign. If a customer asks how much commission you receive, you must tell them.

The FCA application fee depends on whether your dealership needs Limited Permission or Full Permission. Full Permission applications generally cost more. The FCA normally has up to six months to assess a complete application, however, on average they can take three to four months. We can help you prepare a clear, well-supported application to minimise avoidable delays.

Talk to us today

FCA regulation and compliance can be complex, but we will help you navigate the process, allowing you to expand your business and create new revenue streams.

Contact us to talk to our friendly team about your requirements.

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