The motor industry is now in a position to “move forward with confidence” on GAP following this week’s FCA competition remedies announcement, says The Warranty Group.

The company says that while some aspects of the FCA’s findings are disappointing, GAP remains a valuable product to both consumers and dealers, and it is still an essential part of the dealer products portfolio.

Ciaron Whelan, divisional director at The Warranty Group, said: “Today, the main point is that the FCA’s final announcements mean that we all now know exactly where we stand and our view is that GAP remains a very worthwhile product for almost all dealers and a valuable purchase for many, many car buyers.

“We are already in the process of talking to dealers and our partners about how to manage the changes.

"It is important to underline that, in our experience, the vast majority of dealers were already selling GAP in a responsible fashion, so they have little to make in the way of changes.

“The key adjustment is that dealers will need to ensure that they have a consumer focused solution. This means changing their GAP sales structure in order to meet the FCA’s desire to provide customers with a period of time during which they can consider the merits of purchasing the product.  

“Really, the main impact will be that dealers will need to be able to provide clear retrospective evidence that they are adhering to the rules.”