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According to recent Forecourt Foresight research from Close Brothers Motor Finance, despite the fact that the Specialist Automotive Finance (SAF) deadline for independent dealerships is rapidly approaching (January 2025), 36% of dealers are unaware of SAF.

SAF will become a mandatory approval for all independent used car dealers, with the goal of raising standards for dealers’ financing knowledge. This means that starting on 1 January 2025, any dealer who wants to work with lenders who are members of the Finance & Leasing Association (FLA) must get authorised by SAF.

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Close Brothers Motor Finance questioned dealers if they were mindful of SAF and the looming deadline. The overall dealer awareness rate is 64%. Despite over a third (32%) stating they are aware of SAF, they also revealed they have yet to register with the FLA. More positively, more than a quarter (27%) of car dealers stated they were aware and had already registered.

It is critical to ensure that dealers are completely aware of SAF, understand what they must do prior to the deadline, and comprehend the consequences of failing to do so. To assist, and ahead of the deadline, dealers indicate they would appreciate the following support: a face-to-face visit (53%), a phone call (25%), and digital content (20%).

Close Brothers Motor Finance has provided a number of materials to assist dealers in their efforts to get SAF approved. Dealers can view ‘how to’ videos, professional guides, and factsheets. In addition to this, Close Brothers Motor Finance’s Account Managers are also available to assist and guide non-SAF approved dealers through the process.

John Cassidy, managing director – Sales at CBMF, stated: “While we understand dealer concerns in terms of the growing admin and regulatory burden, in this instance it is important. SAF-accreditation will improve outcomes for customers on an industry-wide scale and help dealers in the long run.

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“Dealers who choose not to become SAF accredited will not be able to offer their customers motor finance from FLA members, who make up the majority of finance providers. They also risk falling behind their competitors. Approval will help strengthen the relationship between customers and dealers, and consumers’ heightened trust in the expertise and knowledge of the dealer improves. This can ultimately lead to more sales, as well as enhanced customer loyalty, and encourages people to return to the same forecourts. With further pressure on motorists’ purse strings a likely possibility, providing the right finance packages at dealerships will be imperative to driving profitability.”