While consumers may welcome the new transparency around commissions, there is also the possibility of a fresh appeal to the Supreme Court, which could theoretically overturn recent decisions. But even an expedited Supreme Court case will likely take several months, and until then the industry will need to comply with the new court order.

The decision means dealers and motor finance businesses across the country are looking at existing deals to see if they can be completed, according to a letter to dealers from Honda Europe’s finance director Richard Winter, first reported by the Car Dealer website. “Motor finance providers across the industry will consider whether they can now handle finance before changing their systems in response to the decision,” says Winter.

“As a result of this decision, Honda Finance will stop making payments until further notice while we continue to evaluate the decision and its impact. There will be no exceptions to this,” he said.

Honda has asked for dealer support in “managing customer expectations” after canceling new vehicle deliveries scheduled for the weekend until further notice. But the implications extend much wider than dealership tribunals, as the latest ruling raises the prospect of billions of pounds in damages being awarded to customers with existing car finance deals. Although some analysts estimated the potential payout figure at £16bn, Close Brothers, one of the finance companies named in the appeal court decision, said it would appeal the decision. Meanwhile, Close Brothers’ share price has been hit hard, as has that of Lloyds Bank, which owns Black Horse Finance; He is also said to be “evaluating the potential impact” of the decision.

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