FCA Consumer Duty 2025 – What Car Dealers Need to Know
- staceywaller
- Jun 17
- 4 min read
Updated: Sep 10
The Financial Conduct Authority’s (FCA) Consumer Duty is transforming how car dealerships operate in 2025. With stricter regulations and increased FCA scrutiny, compliance is no longer optional—it’s a business-critical requirement.
For car dealers offering vehicle finance, insurance products, or add-on services, the Duty is reshaping how you design, distribute, and sell products. In this guide, we’ll break down:
What the FCA Consumer Duty means for car dealerships in 2025
Why compliance is essential to protect your business
Practical steps your dealership can take to stay compliant
How ComplianceTrak can help you meet FCA expectations
What Is the FCA’s Consumer Duty?
The Consumer Duty sets a higher standard of care for customers, requiring dealerships to deliver fair value, clear communications, and better support.
The FCA outlines three key principles that all dealerships must follow:
✅ Act in good faith toward customers
✅ Avoid foreseeable harm to customers
✅ Support customers in achieving their financial objectives
Why It Matters to Car Dealers in 2025
With the FCA ramping up supervisory activity in 2025, particularly around Appointed Representative (AR) networks and the motor finance sector, dealers can expect increased scrutiny.
Consumer Duty applies to all firms involved in the design, distribution, and servicing of retail financial products—this includes:
Vehicle finance (e.g. HP, PCP)
Insurance products (e.g. GAP, extended warranties)
Add-on services (e.g. service plans with a financial element)
If you’re part of an AR network, both your dealership and your principal firm must demonstrate ongoing compliance with real evidence.
The Four Key Consumer Duty Outcomes
Dealerships must demonstrate compliance across four critical areas:
Products & Services – Must be fit for purpose and aligned with customer needs
Price & Value – Costs must represent fair value, not just profitability
Consumer Understanding – All communications must be clear, fair, and not misleading
Consumer Support – Customers must receive effective, accessible support before, during, and after purchase
Why Consumer Duty Matters for Car Dealers in 2025
With the FCA increasing its supervisory activity in 2025—particularly around Appointed Representative (AR) networks and the motor finance sector—dealerships face greater regulatory scrutiny than ever before.
Consumer Duty applies to all firms involved in the design, distribution, or sale of financial products, including:
🚗 Vehicle finance – HP, PCP, leasing agreements
🛡️ Insurance products – GAP, extended warranties, tyre & paint protection
🔧 Add-on services – Service plans with financial elements
If you’re part of an AR network, both your dealership and your principal firm must be able to provide clear, auditable evidence of compliance.
Practical Steps for Car Dealerships to Stay Compliant
1. Review Your Products and Services
Assess your finance, insurance, and add-on products to ensure they are suitable, transparent, and aligned with customer needs.
2. Assess Value – Not Just Price
The FCA expects dealerships to evaluate whether products deliver fair value. For example, is your GAP insurance priced appropriately based on the risk and coverage provided?
3. Improve Customer Communications
Pre-contract documents and sales discussions must be clear, jargon-free, and easy to understand. Avoid misleading language and provide balanced information.
4. Strengthen Your Sales Process
Train sales staff to identify and support vulnerable customers
Avoid high-pressure sales tactics
Ensure all recommendations are in the customer’s best interests
5. Evidence Your Compliance
It’s not enough to say you’re compliant—you must prove it. That includes:
✅ Documenting product governance reviews
✅ Recording customer interactions and disclosures
✅ Monitoring sales behaviours
✅ Logging staff training and competency checks
What’s Next for Car Dealers in 2025
The FCA has made it clear: Consumer Duty is not a one-off exercise. It’s an ongoing obligation that should influence your dealership’s culture, processes, and governance.
Dealerships that embrace Consumer Duty can:
✅ Reduce regulatory risk
✅ Build stronger customer trust
✅ Increase profitability through better customer outcomes
Now is the time to review your compliance framework, close gaps, and invest in tools that make demonstrating compliance simple and auditable.
How ComplianceTrak Helps Dealerships Meet FCA Consumer Duty Requirements
At ComplianceTrak, we provide a complete compliance solution designed specifically for the automotive sector. Our platform helps dealerships simplify FCA compliance and turn it into a competitive advantage.
Our FCA Compliance Solutions Include:
🔍 Proactive monitoring & compliance audits
🖥️ Purpose-built compliance software – streamline processes and capture evidence
🎓 Training & competency support for sales and management teams
📊 Fair value assessments and product governance tools
🤝 AR principal services – going beyond simple box-ticking
With ComplianceTrak, you can stay ahead of FCA expectations, protect your dealership, and build a customer-first culture.
Get Expert FCA Consumer Duty Support Today
If you’re unsure whether your dealership meets FCA Consumer Duty standards, we can help.
Contact ComplianceTrak today to book a free consultation or demo and discover how we can support your business with:
✅ Compliance audits
✅ Staff training & competency frameworks
✅ Product fair value assessments
✅ AR principal support services
Stay compliant. Build trust. Drive growth.
Get in touch with us today to find out how we can support your dealership.
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