An accredited scheme...

An accredited scheme to reassure buyers has been devised by the Finance and Leasing Association (FLA), with the backing of the Institute of the Motor Industry (IMI).

It follows FLA research which revealed that most customers had decided about how to pay for their purchase before even visiting a forecourt. High interest charges and the motor trade’s poor reputation were highlighted at the body’s annual convention as major reasons for borrowing from other lenders.

A new impartial website, which provides useful information and guidance, is part of the scheme. At www.financingyourcar.org.uk motorists can fill out a questionnaire, which then recommends the type of finance deal that suits them best. There’s also helpful consumer protection advice and a jargon-buster.

The FLA’s new professional accreditation is aimed at employees, rather than garages, and will ensure staff who deal with customers get sufficient training. The scheme’s website is already live, while the first candidates will get their certification in the spring. A spokesman for the Financial Services Authority (FSA), a regulatory body, welcomed the move. He said: “Dealers are now regulated by the FSA when arranging insurance products such as payment protection, but we welcome any scheme designed to improve standards.”

While high street and online lenders traditionally offer better deals than showroom finance, efforts to improve competitiveness can only be good news for car buyers.