The automotive industry is a competitive industry and as such, you will be keen to provide the best service possible for your customers. As part of this, you might want to make your cars, motorbikes and other vehicles more affordable for them, as this will naturally incur more sales for your dealership. To assist your customers, you could offer finance options as this will spread the cost of any expensive purchases they choose to make, but if you do decide to provide finance, you will need to be authorised by the Financial Conduct Authority (FCA).
Partnering with a trusted FCA‑compliance technology provider, such as Automotive Systems (ASUK), who offer FCA compliance software designed specifically for dealerships, can help you introduce finance options in a secure, structured and compliant way from day one.
What is FCA Compliance in Automotive Sales?
Motor dealers who directly provide credit for their customers or who enable access to third-party credit companies need to be authorised by the FCA.
FCA compliance signals to customers that your dealership takes regulatory standards seriously, with proper controls in place to ensure fairness, transparency, and legal compliance.
ASUK’s Treating Customers Fairly (TCF) software helps ensure dealerships follow FCA requirements consistently by guiding sales teams through compliant processes and preventing incomplete or misleading finance documentation.
Failing to secure FCA authorisation can leave a dealership unable to offer credit. Lenders or brokers typically refuse to work with non‑authorised dealers, and non‑compliance can expose a dealership to fines and reputational damage.
Who are the FCA?
The FCA regulates the UK finance industry. Their primary goal is to ensure that customers are treated fairly and to eliminate the risk of financial crime in business. They make sure customers only take out credit with reputable businesses and that they aren't charged unfair interest rates when doing so.
When applying to the FCA for authorisation, they will ask to see your business plan. This is to ensure you meet their threshold conditions which are designed around their specific criteria. You will need to satisfy them that you have the best interests of your customers in place and that you have adequate internal control mechanisms in place, including staff KPI's, to manage financial crime risk.
For more information on the FCA and the application process, visit the FCA website.
Can Compliance Be an Investment?
Yes — compliance can represent a meaningful investment. By offering finance options to customers, dealerships make purchases more accessible, which can increase sales volume. On top of that, providing finance‑related add-ons (such as insurance, warranty, GAP, tyre or alloy wheel cover) creates additional revenue opportunities.
Beyond the numerical and financial benefits, FCA compliance helps build customer trust and protects your dealership’s reputation — which supports long‑term viability and growth.
However, compliance isn’t just about ticking a regulatory box. Without the right processes and tools, maintaining compliance can be cumbersome, error‑prone, and costly — potentially turning compliance into a burden rather than a benefit.
By incorporating automated compliance checks and real‑time reporting, ASUK’s TCF system reduces the manual workload and gives dealerships full visibility over finance performance, helping turn compliance into a commercial advantage.
Supporting Vulnerable Customers
The FCA places a strong focus on protecting vulnerable customers and ensuring fair, informed decisions.
ASUK integrates a vulnerability-assessment tool (via Comentis) into their TCF software to help sales teams identify and appropriately support customers who may need additional care, reinforcing compliant and ethical selling practices.
Customer Protection
Finance fraud presents a growing risk in the automotive sector.
With biometric ID verification (powered by Onfido), ASUK enables secure document and identity checks, supports safe sales and reduces fraud exposure for dealers.
Which FCA Compliances Cover My Business?
There are two types of FCA compliance permissions a motor dealer may need, depending on how they operate:
- Limited permission: If your main focus is selling vehicles and finance is offered only to support sales as a secondary activity, you will typically apply for limited permission. This enables you to work with FCA‑regulated credit brokers and lenders.
- Full permission: If introducing customers to finance or insurance products forms a primary aspect of your business activity, or if you are already regulated for general insurance distribution, you must apply for full permission.
Most motor traders fall under limited permission, but it is important to confirm your exact requirements with the FCA based on how you operate.
Whether your dealership processes a handful of finance deals each month or handles these transactions daily, ASUK provides scalable digital oversight to keep every step compliant and auditable.
Contact Us
Since 2007, we have partnered with many of the leading motor dealers in the UK. We can help you maintain compliance with the robust software solution that we provide: Treating Customers Fairly (TCF). Our flexible, value-added software is designed with KPI relevance in mind, with a simple and easy-to-use interface that will help you maintain compliance in a number of areas.
Discover relevant KPI's for the size and scope of your business here today
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