New UK Commission Disclosure Law
What It Means for You When Buying a Used Car.
As a used car dealership, we understand that buying a car is a significant decision. It's a process that should be transparent and straightforward, so you feel comfortable and confident every step of the way. That’s why we want to explain the new legislation that has recently come into effect in the UK and how it impacts your car-buying journey.
All car dealerships are now legally required to disclose commission details to customers before completing a vehicle sale. Here’s what you need to know about this change.
What is the New Commission Disclosure Law?
Under this new rule, car dealerships must clearly inform customers about any commission they earn from third parties, such as lenders providing car financing. The dealership must present a document for you to sign, confirming that you understand what commission we may receive on a financed purchase.
This legislation is designed to increase transparency in the car-buying process, ensuring that customers know exactly how dealerships make money on financed sales.
In the past, some dealerships may have received higher commissions by steering customers towards finance products that were more profitable for the business rather than being in the customer’s best interest. The government wants to eliminate any potential for that conflict by ensuring you're fully informed before committing to any finance agreement. By having you sign a commission disclosure form, the goal is to empower you with knowledge and give you greater confidence in your financial decision-making.
What does it mean for you?
1. More Transparency
You’ll now receive a clear statement showing if we earn a commission and how it relates to your car finance agreement. We believe that transparency builds trust, and we welcome this opportunity to share information with you.
2. No Impact on Finance Offers
Don’t worry, disclosing commission won’t change the financing options or terms you qualify for. The rates you receive are based on your credit profile and other factors, not on how much commission the dealership may earn.
3. Clearer Choices
This new requirement allows you to make fully informed decisions when choosing between different financing options. We’ll walk you through the details so you can compare your choices confidently.
Here’s how it works when you choose to buy a used car with finance through our dealership:
- Finance Application
If you decide to finance your vehicle, we’ll explain all the available finance options and help you find one that best suits your needs.
- Disclosure Statement
Before you sign the final agreement, we’ll provide a document outlining any commission we may earn from the lender. You’ll be asked to sign this form to confirm you’ve been made aware of the commission details.
- · Review and Approval
Once you've signed the form, the finance agreement can be processed, and we’ll get your new car ready for collection.
At Chrome Motors we have always aimed to provide our customers with honest advice and quality service. We don’t believe in pushy sales tactics or hiding important information. This new law simply formalises what we've already been doing, being open and honest about how we earn our income.
If you have any questions about the new legislation or how car financing works, we’re here to help. Feel free to reach out or visit us in person to discuss your options. We want your car-buying experience to be smooth, transparent, and enjoyable from start to finish.
Buying a car should be an exciting and stress-free experience, and we're committed to keeping it that way. Whether you’re ready to find your next vehicle or just want advice, visit Chrome Motors on Brook Street in Macclesfield. Or contact Danny on 07790 958220