Carparison lead the way with commission transparency

Carparison lead the way in car leasing broker commission transparency

Propelled by the launch of a brand-new website, Carparison have become the first leasing broker in the UK to offer full commission disclosures online and for both business and personal contract hire agreements.

An industry first

Carparison are the first car leasing broker to display commission figures at the point of online advertisement and are the first to do so for both regulated (Personal Contract Hire - PCH) and unregulated (Business Contract Hire - BCH) agreements.

The amount of commission earned by Carparison is now listed among other finance information relating to every lease deal displayed on their website, whether regulated or not. As a result, customers will now be able to view and understand this often-shielded figure without making contact.

Not only is this move a first for the industry, it surpasses current legal guidelines for brokers which only commits brokers to disclosing this information if and when asked for it.

What is commission?

Carparison are a leasing broker. It is their role to source market leading car and van lease deals through negotiations with both the UK’s leading funders (who will finance the agreement), and the dealerships (who will supply and deliver the vehicles).

This is a careful negotiation of vehicle stock security and purchase price, as well as agreeing favourable finance terms. Although the facilitators of this relationship, Carparison are not the supplier of either service and therefore do not make profit directly from the car sale alone.

The commission incorporated into a vehicle lease deal therefore offers transparency of the earnings Carparison makes for sourcing and facilitating the lease agreement. 

The figure is already reflected in the lease costs advertised and does not affect how the lease deals are ranked on site. 

Click here for a full breakdown of how we make our money.

Surpassing current legislation

Current legislation for vehicle finance agreements dictates that any commission earned from a new contract by the leasing broker must be disclosed to a customer if they ask for it.

In recent months a select few providers have made the welcome move to display commission figures on order documentation. However, Carparison have taken a marked step beyond this.

Matt Woodward, General Sales Manager, commented,

“We wanted the launch of our new website to accommodate a number of breakthrough moments for the leasing industry and our place within it.

In terms of commission disclosure specifically, it was essential for us to pair our revitalised look with our aim to lead the revolution for transparency in an industry whose inner workings are considered a mystery for many. We wanted to better current benchmarks to offer this disclosure onsite as we feel it is a figure often perceived to be far greater than it is in reality. Plus we wanted to do so for both personal and business contract hire agreements.

I am extremely proud that Carparison are the first UK leasing broker to offer such transparency, and we will continue to always put our customers first.”

To view the commission applicable to any Carparison lease deal, head to the corresponding vehicle lease detail page. There, as well as being able to personalise terms and order online, you will see commission and all applicable fees within the Deal Overview section.