Who is the ad directed at?
[[Business Users]],
[[Retail Customers]], or
[[Both]]?
Business users aren't protected by the consumer credit act, but there are still some things to note.
Firstly, it's likely that the prices listed are exclusive of VAT. The BCAP code stipulates that ex-VAT prices are accompanied with "excludes/excluding VAT at 20%". This can be as an end caveat "Prices exclude VAT at 20%". Note that both the nature and rate of the tax needs to be stated.
What is the advertiser asking listeners to do?
[[buy a vehicle->Business Purchase]], or
[[hire, rent or lease a vehicle?->Business Rental, Lease or Hire]]
What does the advertiser wish to quote in the ad?
[[A monthly amount->Business Purchase Quoting Monthly Amount]],
[[just a deposit->Business Purchase Quoting Deposit Only]],
[[just the rate of interest->Business Purchase Quoting Rate Of Interest Only]], or
[[none of these->Business Purchase Quoting Nothing]]?
If there is also a deposit payable, the ad needs to say "deposit payable" but does not need to give the amount of the deposit.
There is no need to give the length of the agreement.
In most instances no further information would be required.
In most instances no further information would be required.
In most instances no further information would be required.
If the ad includes a monthly amount and there is a larger initial payment, then the ad needs to say "initial rental required" or similar, but does not need to give the amount.
It needs to be clear that the ad is a lease/hire/rental agreement. Statements that suggest ownership of the vehicle, along the lines of "yours for only £x a month" should be avoided.
If an ad is aimed at both retail and business consumers, it must follow the rules for retail consumers.
It's important to note that any prices given must be inclusive of VAT.
[[continue->Retail Customers]]
Is the advertiser asking listeners to [[buy a car->Retail Purchase]]; or [[rent, lease or hire a car->Retail Rental, Lease or Hire]]?
Is the Representative APR for the deal:
[[0%->Retail Purchase at 0%]],
or is it [[greater than 0%->Retail Purchase at Cost]]?
Does the advertiser want to include a [[monthly amount->Retail Rental Quoting Monthly Amount]] or [[not->Retail Rental Quoting Nothing]]?
Does the advertiser wish to quote:
[[a monthly amount->Retail 0% Quoting Monthly Amount]],
[[just a deposit->Retail 0% Quoting Deposit Only]],
[[just the rate of interest->Retail 0% Quoting Interest Only]], or
[[none of these->Retail 0% Quoting Nothing]]?
Does the advertiser wish to quote:
[[a monthly amount->Retail Cost Quoting Monthly Amount]],
[[just a deposit->Retail Cost Quoting Deposit Only]],
[[just the rate of interest->Retail Cost Quoting Interest Only]], or
[[none of these->Retail Cost Quoting Nothing]]?
A monthly amount in a 0% ad doesn't contain any [[cost of credit]].
The ad will, however, need to contain enough information for listeners to discern the full price of the vehicle. This would mean the deposit, the length of the agreement, and any final payment.
This is in line of rule [[3.18]] of the BCAP code.
If quoting just the deposit, the ad need only state that the loan is interest free. This need not be in the "0% Representative APR" format.
In most instances nothing further would need to be added. Do note, though, that the form "Representative 0% APR" is not required; a simple "interest free" or similar should be sufficient.
In most instances, no further information would be required.
"Any costs, including interest, commission, taxes and any other kind of fees which are required to be paid by or on behalf of the borrower or a relative of the borrower in connection with the credit agreement, whether payable to the lender or to any other person, and which are known to the lender, except for notarial costs."
FCA Glossary
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product or service depicted in the advertisement.
A monthly amount in a greater than 0% APR ad contains a [[cost of credit]].
The ad must feature a complete representative example. This consists of:
the words "Representative Example",
total amount of credit,
an APR, worded thus: “Representative X% APR” (the APR available on 51%+ of deals arising from the advertisement),
the rate of interest and whether it is fixed or variable,
the cash price,
the amount of any advanced payments and any other fees (if relevant),
the duration of the agreement or number of payments,
the total amount payable, and
amount of each repayment of credit (if relevant).
Under advice from the FCA, Radiocentre take the view that a given deposit is a comparative indicator, and so therefore the Representative APR must also be given.
The rate of interest must be given in the form "Representative x% APR". It must also be accompanied by one of the following:
an "incentive" to take out credit (e.g. “nothing to pay for a year”, “get cash fast”, “2% off our usual rates”);
a "comparative indication" (e.g.“low cost loans”, “our lowest rates”, “save money”, “low monthly payments”); or
a reference to poor credit rating (e.g. “can’t get credit?”).
Nothing further will be required, as long as no phrasing suggests:
borrowing from the advertiser is better than borrowing from elsewhere,
borrowing from the advertiser now is better than borrowing from the advertiser at other times,
incentives are available when purchasing on finance, such as free insurance, or free optional extras, or
a suggestion that credit will be offered to people who might otherwise expect to be refused, such as those with a poor credit rating.
If any of the above feature in the ad, then the Representative APR must be included.
If a lease/hire ad mentions a monthly amount it needs to also include the following:
Any initial rental (this must not be referred to as a deposit),
the length of the agreement, and
any final obligatory rental payment.
Does the advertiser also want to include [[an optional purchase payment->Retail Optional Purchase Payment]]?
If the ad is just saying that there is a lease available, then it's unlikely it will need to include anything further.
If an ad for a rental agreement mentions an option to purchase, it must be treated as a purchase advert rather than a rental ad. The ad must follow the rules for [[Retail Purchase]].