Credit Broking Permission for Motor Dealers key checks
The regulated activity
Whether the dealership is simply selling vehicles or also introducing customers to lenders, brokers or motor finance products.
The evidence trail
How the customer journey, website wording, application documents and FCA permissions should tell the same story.
The practical next step
What to prepare before an FCA application, FCA licence discussion or post-approval compliance review.
What credit broking means in a motor dealer setting
In a dealership, credit broking can involve introducing a customer to a finance provider or broker.
It can form part of the vehicle sales journey even where the dealer is not lending money itself.
For example, a salesperson who explains monthly payment options, sends the customer to a lender application link or passes details to a broker may be involved in a finance introduction.
Motor trade example
A car dealer may describe itself as a vehicle retailer, but the finance conversation can still involve regulated activity. The customer journey, lender relationship and website wording need to be checked together.
Introducing customers to lenders
If staff discuss finance options or direct customers towards a lender, the firm should consider whether permission is required.
The practical customer journey matters.
The wording matters. A lender provides the finance, while a broker or introducer may help arrange or introduce the customer to finance. A dealer should avoid wording that makes its role unclear.
Finance proposals and customer journeys
A finance proposal should sit within a clear customer journey that explains who does what and when.
This helps with FCA applications, disclosures and ongoing records.
A practical customer journey might include the customer choosing a vehicle, discussing affordability, being introduced to a lender and receiving finance disclosure wording before a proposal is submitted.
If a finance proposal is accepted, declined or referred, the dealership should know where that outcome is recorded and how it links back to the customer file.
Why permission matters before offering finance
Dealers should check permissions before offering finance or promoting finance availability.
This can avoid issues with lenders, customers and regulatory expectations.
Sales staff should understand what they can explain, where the disclosure wording is kept and when a customer should be directed to the lender or broker for product-specific information.
Commission and disclosure considerations
Commission arrangements should be understood and disclosed appropriately where required.
Records should show how finance-related income is managed.
Commission disclosure should not sit in a forgotten template. Staff need to know what customers are told, where the wording appears and how commission records can be checked later.
Commission and records
Where commission is paid by a lender, the dealership should know where the disclosure wording is stored and how commission information can be checked later for reporting or complaint handling.
How credit broking connects to CCR009
Credit broking activity can feed into FCA consumer credit reporting, including CCR009 where applicable.
For reporting help, see our CCR009 reporting support.
That link to CCR009 becomes practical at year end. Finance introduction data, lender information, broker information and commission information may all be needed for FCA consumer credit reporting.
Records dealers should keep
Dealers should keep records of finance introductions, lender relationships, commission information, customer disclosures and complaints.
For permission support, see our credit broking permission support.
Credit broking customer journey example
1. Customer asks about finance
The customer asks whether monthly payments are available. Staff explain the dealership’s role and provide the correct finance disclosure wording.
2. Customer is introduced
The customer is introduced to a lender or broker. The dealership records which route was used and where the proposal was submitted.
3. Proposal outcome is recorded
The proposal may be accepted, declined, referred or abandoned. The outcome should be easy to find later in the sales or finance record.
4. Records support reporting
The same records can help with complaints, commission checks and CCR009 reporting preparation where the return applies.
Frequently Asked Questions
What is credit broking?
Credit broking can include introducing customers to lenders or finance brokers in connection with credit.
Do motor dealers carry out credit broking?
Many motor dealers may carry out credit broking where they introduce customers to vehicle finance providers.
Does credit broking require FCA permission?
Credit broking is a regulated activity and may require FCA permission depending on what the firm does.
How does credit broking connect to CCR009?
Credit broking activity can be relevant to FCA consumer credit reporting, including CCR009 where applicable.
Can 009 Compliance help?
Yes. 009 Compliance can help motor dealers with FCA authorisation preparation and CCR009 reporting organisation.
Official FCA resources
These official FCA pages may help you check the current position before making decisions or submitting information.
- FCA authorisation for official information about applying to be authorised.
- FCA Connect for applications, notifications and related FCA interactions.
- FCA Register for checking firm status, permissions and appointed representative information.
