I have a car dealership, do I need FCA authorisation to sell on finance?

If you own a car dealership and are considering offering finance options to your customers, it is important to understand the regulatory requirements. Many car dealerships often ask whether they need FCA authorisation to sell on finance. The simple answer is yes, if you want to sell regulated contracts.

Selling regulated contracts means offering finance options to individual customers, where the FCA's consumer credit rules and regulations apply. However, if you are selling unregulated contracts, such as providing finance to other businesses, FCA authorisation may not be required.

As your car dealership expands and you wish to offer finance options directly to customers, it is essential to have a good understanding of financial regulation. Many car dealerships face challenges in meeting the FCA's threshold conditions and explaining how they comply with regulatory standards.

When applying for FCA authorization, car dealerships typically apply for secondary credit brokering. This requires having robust policies and procedures in place to demonstrate to the regulator that the dealership is "ready, willing, and organised" to comply with regulatory requirements. Seeking assistance from compliance firms like Get Authorised can greatly improve your chances of obtaining FCA authorisation.

If you would like to improve your chances of your car dealership firm becoming FCA authorised, please feel free to get in touch with us at Get Authorised. We can provide guidance and support throughout the authorisation process.