Car deliveries paused after finance commission ruled unlawful

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Court of Appeal's ruling effectively bans dealers profiting from finance deals unless the buyer gives their consent

Some car makers have paused sales in the wake of a UK court judgement that taking commissions on car financing is unlawful. The landmark ruling by the Court of Appeal has thrown banks, dealers and car makers into a state of disarray, given that it effectively bans dealers from profiting on finance deals unless the buyer gives their consent.

Judges unanimously ruled to uphold their appeals, stating that “a broker could not lawfully receive a commission from a lender without obtaining the customer’s fully informed consent to the payment”. Moreover, the ruling effectively threatens the long-established agreement that dealers receive commissions from banks or lenders for acting as a middle man in selling finance agreements on vehicles.

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