A Car Finance Checklist for Independent Dealerships

Car finance is a critical part of the car buying journey and so is a key battleground for independent dealerships competing with larger groups or supermarkets. Customers expect a smooth, flexible finance option at the point of purchase, and without it, independents risk losing sales.

But the good news is that finance is not only possible for independents—it can be a powerful way to win trust, boost margins, and stand out against the bigger players. Here’s a checklist to help smaller dealerships understand what’s required and how to make finance work as a genuine competitive edge.

Understand the Regulatory Landscape

The first step for any independent dealership is to make sure it has the proper regulatory permissions to offer finance. Without it, a dealership cannot legally broker finance for customers. Some smaller dealers choose to work under an Appointed Representative (AR) network with a larger broker partner acting as the Principal firm, but having your own permissions gives greater control when sitting down with customers.

Once authorised, the next priority is to get to grips with the regulatory environment. The FCA’s Consumer Duty, which came into effect in 2023, has raised the bar for compliance, requiring dealerships to de

monstrate that they act in the customer’s best interests at every stage of a regulated transaction. Independent dealers must be transparent when explaining finance options, document and evidence affordability checks, and make sure that commission structures reflect fair value for the consumer. Just as importantly, they need to maintain clear audit trails for every transaction. With the right compliance framework, ideally one embedded into their finance platform, independents can deliver the rigour that rivals the biggest franchise groups.

Build Strong Lender Relationships

Large franchise dealers can sometimes negotiate preferential terms with lenders because of their access to larger volumes of customers, but independents are not locked out of these negotiations. By partnering with platforms that provide access to a wide panel of lenders—DealTrak, for instance, connects dealers to over sixty—they can offer customers genuine choice across products such as hire purchase (HP), personal contract purchase (PCP) or personal loans. Building these relationships not only improves conversion rates but also gives independents the ability to negotiate with lenders who are eager to extend their reach via trusted smaller dealerships.

Focus on the Customer Experience

Independent dealers can gain an edge by weaving communications about finance naturally into the customer journey, sometimes before the customer even enters the showroom. That means having transparent, honest discussions about affordability and options, and using digital tools to produce instant, accurate finance quotes. Reducing error rates is also critical, as nothing undermines confidence faster than paperwork delays or mistakes that put the purchase on hold. A finance process that feels seamless and professional helps to reassure customers that they are in good hands.

Leverage Technology to Level the Playing Field

Technology is one of the strongest tools independents can use to compete with franchises. A robust finance platform can automate compliance checks, minimise errors, and integrate multiple lenders to provide instant decisions. By using technology to simplify the finance journey, dealers can create a more efficient, transparent and trustworthy process. Features like digital finance quotes and e-signatures help meet customer expectations while also saving time for sales teams.

In conclusion, yes, finance is absolutely possible for independent dealerships and more than that, it’s essential for staying competitive. By meeting compliance requirements, forging strong lender relationships, and investing in technology, independents can deliver finance processes that are every bit as seamless and trustworthy as those offered by the largest franchise groups.

Dealerships that embrace finance as an opportunity will find themselves better placed to win business, build loyalty, and secure their future in a changing automotive market.