Why Transparency Is Your Competitive Advantage

Trust is more important than ever when it comes to consumer decision making. Building this trust is one of the best investments of time you can make to improve your performance in 2025 and beyond. With the Financial Conduct Authority’s (FCA) Consumer Duty setting a new standard for how financial products are presented and sold, dealers and brokers have a powerful opportunity to turn regulatory compliance into a competitive advantage. 

The core principle of the Consumer Duty requires firms to act to deliver good outcomes for retail customers. In practice, this means making sure that customers receive fair value, understand the products they’re being offered, and can make informed decisions about their purchase. For dealers and finance brokers, this marks a shift from more traditional transactional selling to relationship-building. Trust and transparency are two things that can help bridge the two approaches.  

One of the most effective ways to demonstrate transparency is through clearer communication around Annual Percentage Rates (APR) and product optionality. Historically, APRs have been a sticking point in the finance process — sometimes misunderstood by customers and, often, inconsistently explained across the market. But by breaking down the APR clearly, showing how it’s calculated, what it includes, and how it impacts monthly payments, dealers can empower customers with a genuine understanding. 

This clarity doesn’t just cover mandatory requirements of the Consumer Duty; it reassures customers that they’re not being misled or upsold without reason. It fosters an environment in which trust can thrive. When customers feel that a dealer is acting in their best interest, they’re more likely to return, refer others, and leave positive reviews. 

Equally important is the way optionality is communicated. Customers should be guided through available finance products (PCP, HP, or lease options) with clear, unbiased information about each route. This doesn’t mean overwhelming them with too much information in fear of leaving something out. Instead, it’s about simplifying the jargon, clearly highlighting payment terms, impacts on credit scores, total costs over time, and helping the customer match the product to their financial needs and goals. 

In this climate, digital tools and F&I platforms can support this mission of transparency. Dealers armed with integrations to a larger number of lenders are better able to allow customers optionality and flexibility when it comes to where their funding comes from.  

The Consumer Duty presents an opportunity to reset how trust is built in the car finance journey. Dealers who take the time to communicate clearly, explain options honestly, and demystify the industry will not only meet their obligations — they’ll stand out in a crowded, competitive market.