Close Brothers says £320m car finance hit ‘comfortably absorbed’

What’s Happened with Close Brothers?

In a nutshell, Close Brothers have found themselves in a bit of a pickle. They’ve set aside a whopping £320 million to cover costs related to mis-sold car loans. This stems from the Financial Conduct Authority’s recent motor finance compensation scheme. While this news may sound a bit finance-heavy, it has already had a positive effect on their share price, which jumped nearly 20% - a bit like a car hitting the gas on an open road!

How Does This Impact Car Buyers?

If you're wondering how this affects your plans for buying a car, you're not alone. For starters, Close Brothers have reassured everyone that they can absorb these costs comfortably. Essentially, they're saying: "Don't worry, we've got this." This means they’re well-positioned to continue offering their services without disruption.

For everyday car buyers, this news highlights the importance of understanding your finance agreements. With the FCA scrutinising historical finance deals, transparency in car finance is becoming more critical than ever. It makes now a great time to explore your options and ensure you’re getting the best possible deal.

Why Does This Matter Now?

With changes like these happening in the finance world, it’s a good reminder to prospective car buyers about the importance of considering your finance options carefully. At The Car Co, located on Manchester Road, Bury, we offer flexible finance options with competitive rates starting at 8.9% APR. Our knowledgeable staff can help ensure that you understand every aspect of your agreement, so there are no surprises down the road.

Should You Buy Now?

If you’re in the market for a new or used car, now might be a perfect time to act. With Close Brothers addressing these concerns head-on, you can approach car finance with more confidence. Plus, by exploring choices like hybrid or electric vehicles, you may even find a perfect match for today’s fuel-conscious buying trends.

Talk to Us About Your Car Buying Needs

Whether you’re eyeing a budget-friendly option or thinking about that sleek luxury model, The Car Co is here to support your journey. Wondering about switching to electric? Want to ensure you have the right finance deal? Come have a chat with us and explore our wide range of vehicles. We’re here to help make your car buying experience as smooth and informed as possible.