Congratulations. You’ve signed the forms. You’ve got the keys. You’re driving off in your brand new set of wheels. Feeling pretty pleased with yourself, right?
Hold up. What if the deal you thought was “great” wasn’t? What if, under all that guff, all those numbers, all that baffling jargon, you’ve been duped?
Okay. Don’t stress. It’s happened to thousands of UK drivers before you. They’re all wondering the same thing. The question is on every motorist’s lips right now:
Is my car finance deal actually really fair?
Let’s break it down, shall we?
What’s all the Fuss About?
We’re standing in a car showroom. Oh, the thrill! We’ve got the credit approval in our hot little hands. There’s a salesperson smiling ear to ear (possibly a little too much). They’re throwing numbers around like they’re Monopoly money.
“Low monthly payments. Flexible terms. Best deal in town! Worst credit? Doesn’t matter! What do you say?”
Err…hello?
Welcome to the world of car finance deals. Whether it’s PCPs, HP, leasing…somebody’s trying to sell you something. And just like the Used Tyres sketch, it’s the small print that really matters.
Once it’s signed, sealed, and your bank account has been raided…it’s difficult to change your mind.
Thing is, car finance isn’t meant to do that. It’s meant to work for you, not the other way around.
Do I Have a Fair Deal? Let’s Find Out
Okay. Quick detour. A “fair deal” means you know what you’re paying, you know what you’re paying for, and you know that it’s not a snare to make you keep paying and paying (oh, those balloon payments!).
Simple. In theory.
In reality, let’s be honest, this is how things go down…
1. Getting (Mis)sold Commission
Many car dealers and car finance brokers earn commission on the finance deals they sell. Not a problem there. Honest. As long as it’s fair.
The problem is, in the world of car finance, the more you pay in interest, the more the dealer makes in commission. Yep. It’s called discretionary commission, and it’s got a lot of lenders in all sorts of trouble.
It’s not just cheeky. It’s probably unfair. It certainly stinks of a conflict of interest.
In fact, in a move that no-one saw coming, the FCA banned the discretionary commission model in 2021. But there are loads of older deals on their books that may have been affected.
Drivers are demanding answers.
2. APR Ambush
APR (Annual Percentage Rate) is the second big one. Remember that percentage number? All those scary words? That’s your APR. It determines your monthly payments. It determines your total payable. It even determines how flexible you are when you come to sell on.
It’s a biggie. The problem? Drivers are being offered higher rates than they should have to.
Why? Profit.
Check your APR. Compare it with what your credit score should get you. Is it artificially high? You’ve probably been sold short.
3. Hidden Fees and Terms with No Terms and Conditions
Finance paperwork is written by lawyers. Fact.
It’s designed that way. The more incomprehensible it is, the less you ask questions. Which is great when there are hidden fees, mileage penalties, and balloon payments that will trip you up later.
The paper trail here is essential. If you don’t really know what you were signing up for, it’s not fair.
How to Check if Your Deal is Fair or Not
Great. You’re all fired up now. What next?
Simple. Take a look at your car finance agreement. Fish it out from that folder you’ve shoved back into your drawer and stuffed with all those other boring pieces of paper.
And then start reading the following:
APR Rate
If you’re using one of the comparison sites, there will be an interest rate next to every deal. Does yours seem way higher than others?
Commission Disclosure
Does your agreement state that the dealer received commission for arranging the deal? If it doesn’t, badger them for an answer.
Full Breakdown of Charges
Can you see exactly what you’re paying for, and why? Can you follow it, understand it, make sense of it? If it’s wordy and vague and you’re not sure where the numbers are coming from, that’s a no-no.
#### ✅ **Total payable amount**
Go right to the end of the document. It will tell you. How much will you have paid by the end of the deal? By how much does it exceed the value of the car?
Put the kettle on. You’re in for a brewing.
What Next, if It Wasn’t Fair?
Good news. There’s help at hand.
Drivers who have had unfair finance deals—especially those with hidden commissions or unfairly high interest rates—may be able to claim back money.
Not metaphorically. Proper money. It’s happened already.
Thousands of UK drivers have already submitted complaints, and the FCA is looking into widespread issues across the motor finance sector. If your deal falls into that dodgy zone, you could be owed compensation.
One helpful resource is PCP Claims UK, a service that helps drivers figure out whether they’ve been mis-sold a car finance deal. They offer free initial assessments and can guide you through the claims process if you suspect unfair treatment.
But not before some asking and digging. Here’s how.
Step by Step: What to Do Next
1. Talk to the lender first
Talk to the finance company that arranged your car deal. Ask them straight up whether commission was paid, and how your APR rate was calculated. Be polite, but firm.
2. Complain, formally
They won’t like it, but that’s okay. File a formal complaint. 8 weeks to reply. Keep your records.
3. Take it to PCP Claims
Fed up, but not satisfied? PCP Claims is an independent, impartial body designed to help with just these issues.
Common Red Flags to Look Out for Next Time
Maybe you’re not locked into a deal yet—or thinking about an upgrade. Here are the top red flags to look out for to keep yourself safe next time:
- Ask about commission. Feel free to pester the dealer with questions about what they get paid, and who. In fact, it’s good manners to ask. Shouldn’t be a problem for them to tell you.
- Shop around. Don’t just take the first offer. Be smart. Compare car deals online (try our deals page) and check your credit score before you sign anything.
- Terms and conditions confusion. If it’s gobbledygook to you, ask. Repeat the question until they explain it properly. If they can’t (or won’t), walk away.
- Be wary of balloon payments. That shiny low monthly cost might come with a big final bill.
- Know the full costs. Look at the total payable over the full term, not just the monthly outgoings.
Why is All This Important?
Cars aren’t cheap. Buying a car in instalments is by far the most common way Brits get new wheels today. But it’s not just about money.
Fairness is about trust, transparency, and having faith in a system that’s designed to serve you. You’ve worked hard for your money. You deserve a deal that doesn’t screw you over.
Now? The industry’s on the mend (thanks, tighter regulation). There’s a sea change in the works. But dodgy deals still happen. Thanks to this investigation, though? You’re in the know.
