V12VF | Consumer Duty | April 23 - Flipbook - Page 12
Customer needs and objectives
Customer Characteristics
The customer wishes to have the option to source a used car
through motor trade, in a convenient and informed sales process, Looking to avoid unexpected costs or quality issues, including
with arrangement of the finance agreement at point-of-sale, being repairs, given lack of savings across UK households.
able to drive away the car asap after signing.
The customer needs to be presented with product and contract
information that is clear and easy to understand.
A basic level of financial literacy – able to understand the impact
of interest and the need to keep up repayments or car will be
repossessed.
HP specific: The customer wants HP, over PCP. They value
Wants certainty of ownership at end of term and certainty of no
ultimate ownership of a vehicle with a retained value at the end of
charges for excess mileage or damage charges.
the agreement, and/or no restrictions on their annual mileage.
PCP specific: The customer wants PCP, over HP. They value
flexibility to choose whether to take ownership at the end of the
agreement.
They may want value lower monthly payments.
The customer needs to have options to react to a change in their
circumstances.
The customer will want to be able to contact STB easily if
necessary.
Like to change their vehicle regularly or believe they will want to
change their vehicle at the end of the agreement. May expect their
financial position to improve over the period of the agreement or
want lowest available monthly payments now, and will re-finance
the GFV at end of term, or return.
Customer whose circumstances may change, positively or
negatively, during the term of the agreement.
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