BROKER funder Novuna Vehicle Solutions has implemented a fixed commission model for all regulated contract hire agreements distributed on its behalf by brokers as part of its commitment to fair and consistent pricing.
Under the new model, which was introduced on 1 August 2024, commission is fixed at £750 per vehicle contract and is included in Novuna’s regulated ratebooks.
Any processing fees paid by the customer to the broker must be capped at no more than £300+VAT and applied consistently.
“We understand that this new model may represent a significant change in our industry. However, under the FCA’s Consumer Duty Principle it is our responsibility to demonstrate the product represents fair value. Therefore, it was important for us to ensure that we were setting the final price that the customer pays, including any distribution charges (commissions).”
The new model also means that Novuna and its broker partners do not enter into a co-manufacturing arrangement, which would have involved increased oversight, administration and any potential future redress back to the broker.
Novuna Vehicle Solutions’ non-regulated products remain unaffected.
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Sarah Tooze has been an automotive journalist for more than 15 years, specialising in the fleet and transport sectors. She has held senior positions at industry-leading B2B titles Fleet News and Smart Transport, and led campaigns championing motorists as consumer editor for online used car marketplace Heycar and motoring advice website HonestJohn.co.uk. In 2017 she won the Newspress Automotive Business Journalist award.
