Colwyn Bay-Based iVendi White Paper Examines Future of Motor Finance

Colwyn Bay-based automotive fintech iVendi has published a new white paper outlining potential changes to motor finance practices following the UK Supreme Court’s 2025 decision on commission disclosure and the ongoing redress scheme led by the Financial Conduct Authority (FCA).

Titled “Where Now for Motor Finance?”, the report explores how lenders and motor dealers are adapting to shifting regulatory expectations and consumer demands, while highlighting emerging best practice across the sector.

The white paper can be accessed here.

According to the paper, four key trends are developing around motor finance and related value-added products such as warranties. These include the emergence of new finance structures for dealers, a growing move towards price-comparison style searches, increased use of finance pre-approval, and changes to how value-added products are designed and sold.

James Tew, chief executive of iVendi, said the developments reflect a period of adjustment for the industry following recent regulatory scrutiny.

“At iVendi, we believe there are four key trends developing around the significant profit centres of motor finance and value-added products such as warranties,” he said.

“By increasing their understanding of these areas, there are significant new profit opportunities emerging for dealers and motor finance providers, and the white paper explains how these can be maximised.”

The research also draws on insights from the development of iVendi’s Finance Navigator platform, launched in June, which allows dealers to search across multiple lenders on behalf of buyers and receive results within seconds. The system displays estimated monthly payments, personalised interest rates and the likelihood of approval, including pre-approval where available.

Tew said the technology had prompted some dealer and lender partners to reconsider how motor finance is offered, particularly in terms of transparency and compliance.

The report places these developments in the context of wider regulatory change. Last year’s Supreme Court ruling and the FCA’s subsequent redress programme provided greater clarity on commission arrangements and consumer protection issues that have been under scrutiny across the motor finance sector.

Tew said the legal and regulatory developments were part of a longer-term shift towards more customer-focused lending.

“What changed towards the end of last year was the Supreme Court and FCA redress provided greater clarity,” he said. “That has allowed us to ask key questions with more certainty, such as how dealers and lenders are responding to changing needs and demands, and what successful ideas are emerging as a result.”

The white paper concludes that closer collaboration between lenders, dealers and technology providers could help improve risk management, maintain dealer profitability and support consumers in making more informed borrowing decisions as the market adjusts to the new regulatory landscape.