When considering a new Audi through Arnold Clark, many consumers might be surprised to learn about the potential issues with their car finance agreements. Both Arnold Clark and Audi have been involved in financing arrangements that could affect thousands of consumers who purchased vehicles between 6 April 2007 and 1 November 2024.
How Does Audi Finance Work at Arnold Clark?
When purchasing an Audi through Arnold Clark, the dealership often facilitates the finance agreement process. This can involve
Personal Contract Purchase (PCP) or
Hire Purchase (HP), which are common forms of car finance. In such arrangements, Arnold Clark may have operated under a
discretionary commission arrangement (DCA), where they could earn additional commissions based on how financing options were structured for customers. Although Arnold Clark no longer stocks Audi vehicles in their showrooms, many consumers bought Audis through them or similar dealer groups during the affected period.
The DCA can significantly impact the overall cost of your finance agreement because it incentivises dealers to recommend certain products that might not be in your best interest financially. It's important for customers who took out a car finance agreement at this time to understand how these arrangements worked and whether they were misled by the dealer during their purchase process.
Finding Your Lender
If you purchased an Audi through Arnold Clark, identifying the correct lender is crucial for making any claims or complaints. While Arnold Clark was the dealership that facilitated your purchase, it’s important to note that they are not the finance provider. The actual lender will be listed in the documentation provided at the time of purchase.
To find out who your lender is, you should review your finance agreement carefully. Look for details such as the lender's name, address, and contact information. This document may also contain additional information about the terms and conditions of your car finance deal, including any discretionary commissions that were applied to your arrangement.
If you suspect there are issues with your Audi finance agreement facilitated through Arnold Clark, it is important to address these concerns directly with your lender. You do not need a
claims management company; instead, you can
complain directly to the lender at no cost to yourself.
To start the complaint process:
- Gather Documentation: Collect all relevant documents related to your car finance agreement.
- Contact Your Lender: Reach out to the lender using the contact information provided in your finance agreement.
- Explain Your Concerns: Clearly outline any issues you have with the DCA or other aspects of your financing arrangement.
- Follow Up: Keep records of all correspondence and follow up if necessary.
By taking these steps, you can address potential problems without needing to involve third-party claims management companies. Remember that lenders are required by law to respond to complaints within a certain timeframe, typically 30 days or less for acknowledgment followed by an investigation period.
Sources and References
- Financial Conduct Authority (FCA). "Discretionary commission arrangements in motor finance." Available at: [link]
- FCA estimate: Approximately 14 million agreements were affected between 6 April 2007 to 1 November 2024, with an estimated total value of £8.2 billion and an average claim amount of £700 (FCA estimates).