Manufacturers struggled to hit October new car sales as they scrambled to comply with the recent Court of Appeal ruling forcing car loan providers to disclose detailed commission arrangements and secure clear consent from the buyer, according to industry insiders.

In an unexpected ruling on October 25, the Court of Appeal delivered a judgment that shocked those involved in lending to fund car purchases including finance houses, brokers and car dealerships.

The Court of Appeal's decision established that brokers have a fiduciary duty to their clients, meaning they are required to act in the customer’s best interest and to avoid conflicts of interest.

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