27 July 2015

When the Financial Conduct Authority (FCA) set 1 September as the start date for the new GAP insurance rules last month, many auto retailers would have already been taking orders for 65-plate cars.

After all, the average waiting time for a factory order new car in the UK is around 13 weeks, according to Carwow.

Back then, retailers didn’t need to provide the prescribed information about any GAP product that may have been sold with the car; let alone consider the four-day cooling off period that the sale has triggered.

However it would seem that, if the final payment happens in September without the prescribed information for a GAP product being supplied to the customer followed by four-days of cooling off, then you will have contravened the new regulations.

Speaking to the FCA about the situation this week, I was left with the impression that they have very little understanding of this situation; only saying that they wanted to make sure the rules covered those buying 65-plate cars and that dealership have to comply.

Anyone would be forgiven for thinking the changes were rushed in.

Hopefully, Auto Retail Agenda readers are up to speed but it’s probably worth double checking you are retrospectively compliant. Because you can bet the lack of understanding by the FCA won’t apply to enforcement.

Tristan Young
Editorial director
Auto Retail Network

Tags: FCA, trade gap