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Two-thirds of motorists are unaware of dealer obligations in the sale of car finance, according to recent research by Alphera Financial Services.

It has published a new report on consumer attitudes to car finance which warns that the lack of awareness could leave customers open to mis-selling and says there’s a clear need to improve customer knowledge, trust and satisfaction.

The report also says that customers can be ambivalent towards discussing car finance, with 71% putting paint colour considerations as a higher priority.

It urges dealers to ensure that car finance is as easy to understand as the more ‘exciting’ elements of a car purchase, while being more active in engaging buyers in the transparent sale of finance products.

The research also found that the vast majority of consumers would be more likely to buy from a salesperson accredited to sell car finance, because they believe an industry qualification could reduce risk of being mis-sold.

Alphera has established a partnership with the Institute of the Motor Industry (IMI) to promote the uptake of a new education and accreditation scheme for F&I sales specialists.

The IMI’s Accreditation Scheme provides the skills and knowledge necessary for dealer sales staff to confidently discuss car finance and affordability with customers – and ensure car buyers are sold the most appropriate finance product based on an in-depth assessment of their needs.

It is also a platform for self-regulation to support compliance, introducing shared core values across dealerships.

The first assessments took place in July this year, with a 100% pass rate.

Gerry Kouris, Alphera Financial Services marketing manager, said: “This accreditation pathway, robustly assessed and backed by the IMI, will give the customer the confidence they need to trust our industry in everything we do.”

Kouris recently received the International Asset Finance Network auto finance personality of the year award for his work at its annual awards in London.

Download the report here.

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