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Millions of people in the UK may have been Mis Sold Car Finance deals, you may be one of them

Find out if you have been mis-sold your PCP car finance deal now and if you are eligible to claim!


Millions of people in the UK may have been Mis Sold Car Finance deals, you could be one of them

Find out if you have been mis-sold your PCP car finance deal now and if you are eligible to claim!

Office Hours: Mon-Fri 9-5pm 

'Millions of UK motorists may have been mis sold car finance,
FCA investigations have revealed.

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Claim back your mis sold car finance (PCP) today, fill in your details and a member of staff will contact you at your convenience.

Mis-Sold Car Finance PCP Sample Examples

A list of real-life scenarios to demonstrate how you may have been mis-sold a car on finance.

mis sold car finance claims for cars and motors 1

Example 1

  •  A PCP car on a finance deal was not the best option; it would have worked out 40% cheaper if the customer had used a hire purchase agreement.
  • The customer felt that they were pushed into making the wrong decision without complete understanding.


Vauxhall – Corsa – Manual

Mis Sold Car Finance PCP

mis sold car finance claims for cars and motors 2

Example 2

  • The salesperson did not make it clear who would own the vehicle, whether it be the customer, the finance company, or the car dealership.
  • PCP interest was overcharged.
  • The customer did not receive alternative options from the dealership.


BMW – 3 Series – Manual

Mis Sold Car Finance PCP

mis sold car finance claims for cars and motors 3

Example 3

  • The salesperson did not fully explain they would receive a commission on the sale of the car.
  • The customer was mis sold their mileage estimation; the mileage was estimated at 9,000 per year when the dealer knew the customer exceeded this substantially.  

Mercedes – A Class Saloon – Manual

Mis Sold Car Finance PCP

mis sold car finance claims for cars and motors 4

Example 4

  • The customer was not advised who would be responsible for repairs.
  • The vehicle broke down 6 months into the PCP finance agreement.
  • The car dealership would not pay for any repairs and left the customer with a large bill.

Ford – Mondeo – Manual

Mis Sold Car Finance PCP

mis sold car finance claims for cars and motors 3

Example 5

  • PCP payments were unrealistic, no finance credit checks were carried out.
  • The customer was rushed into the finance agreement and assured payments would be affordable. 
  • The salesperson skipped through the car finance agreement (t&c). 

BMW – X5 – Manual

Mis Sold Car Finance PCP

mis sold car finance claims for cars and motors 6

Example 6

  • The car dealership did not explain the interest properly to the customer.
  • Mileage was over charged mileage by 5,000 miles.
  • Customer was not provided with a range of options and felt pressured to take a PCP agreement.
  • PCP interest was overcharged.

Nissan – Quashqai – Manual

Mis Sold Car Finance PCP

What exactly is PCP car finance and how was it mis sold?

PCP stands for Personal Contract Purchase, it is a financial plan to help you obtain a motor for an average of 2-4 years by paying a monthly fee. 

The finance plan is set up in three forms of payment.

  1. You will make a deposit for the vehicle, this could be 10% of the vehicle’s retail price.
  2. Once you have paid a deposit the rest of the agreement is made up of monthly installments.
  3. After 2-4 years when the vehicle agreement comes to an end you will now have a decision to make, either pay a large balloon payment that can be up to 50% of the retail price of the vehicle or you simply hand back the vehicle and have nothing to pay, as long as the vehicle is in good condition and you did not exceeded over your mileage allowance .


mis sold car finance claims for cars and motors Balloon Payment Golf vw
Mis sold car finance claims agreements land rover car

See the example below to understand how it works. Imagine you sign up for a PCP over three years.

The vehicle costs £20,000 the finance company calculates that the vehicle will be worth at least £8,000 after three years. This is how it would look…

  • You pay a deposit for example £2,000 the rest will be obtaining a loan for the sum of £18,000.
  • The outstanding balance is now £18,000,  however it has been agreed that the vehicle will only be worth £8,000 at the end. You only repay £10,000 (plus the interest on the entire £18,000) over the three year period.
  • At the end of the agreement, you either pay the final £8,000 to keep the vehicle or have the option to hand the vehicle back.


Importantly, even if you return the car, you will still have paid interest for the full loan amount (£18,000) over the three year period.

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Book a call with one of the team to see if you have been mis sold your car finance PCP deal today. 

Questions you may ask about mis sold car finance claims

Personal Contract Purchase (PCP) is effectively a personal loan which allows drivers to spread the payments for a vehicle over a long period, typically two or three years.

However, unlike a normal personal loan, you won’t be paying off the full value of the car and you won’t necessarily own it at the end of the deal (unless you choose to pay the final balloon payment).

PCP is one of the more complex financial products available to help you buy a car, but it can be broken down into three main parts: the deposit, the amount you borrow and the balloon payment.

The more details you can recall about your agreement, the more likely it will be that the finance company can locate and verify you against their systems promptly.

This will also help avoid requests for further information which can delay a decision being made.

The Financial Conduct Authority (FCA) regulates the financial services industry in the UK.

The FCA aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole.

This includes car finance which covers several types of financial products you can take out when purchasing a car.

Dealers use PCP deals to draw in people who want to change their car every few years. 73% of new cars in 2014 were bought using PCP, making it the most prevalent financial product in the market.

It is mandatory for Car Finance Companies to keep records of all their customer’s transactions and dealings for at least 6 years.

If you paid off your Finance Deal more than 6 years ago, there may not be any available paperwork for you.

However, there have been cases in which claims have been made against cases of mis-selling over 20 years ago, often without paperwork.

The misconception around car finance is that the product being sold is a car.

This is only partly true. In fact, the main product that is being sold is a financial product – a loan.

The car is a red herring that has deflected the public eye away from this sector of credit broking meaning it has not been under as much scrutiny as, say, mortgages.

The concept of PCP itself is also relatively new.

Dealers offering PCP finance will typically want around 10% of the value of the car as a deposit. Customers pay a deposit on the car they want and then make monthly repayments until the end of the term.

The amount you will have to borrow is based on how much value the finance company predicts the car will lose over the term of the deal (usually 24 or 36 months) minus the deposit you’ve put down.

You will pay this amount off during the deal, plus interest.

So, you are not paying off the full value of the car. Typical annual percentage rates (APRs) start from around 4%.

When the term ends, if you want to keep the car you need to make a lump sum payment (known as a balloon payment) in order to purchase the vehicle outright.

If you are not going to keep the car, you can hand it back without any further payments.

Alternatively, you can use any equity you have in the deal if the car has maintained more of its value than expected to put down as a deposit on a new vehicle, via a new PCP deal.

The average timeframe is between 8-16 weeks from the date of acknowledgement to a decision being made.

Many claims that are rejected initially go on to be overturned by the Financial Ombudsman Service, but the process can take several months.

Compensation will vary depending on your original contract but most claims involving PCP agreements will be worth several thousands of pounds.

Claims will be made against the lender of the finance only.

The broker of the PCP agreement is considered an agent of the lender so the responsibility is on the lender to ensure their brokers behave according to the standards set by the FCA.

Reasons you may have been mis sold your PCP car finance agreement 

Investigation report conducted by the FCA in regards to the Mis Selling of Car Finance (PCP)

The information shown below comes from the Financial Conduct Authority (FCA) in which the FCA sent mystery shoppers to 122 car dealerships; these were their findings…

Find Out In 4 Easy Steps If You Have Been Mis Sold Car Finance


Check if you were Mis Sold Car Finance by completing our online form.


Discuss your claim details with our customer service experts.


Our expert team will establish whether or not you have claim.


Submit your application. 

Mis Sold Car Finance Blogs

Stay updated with all the latest news regarding mis sold car finance here in the UK.

PCP’s are already puzzling enough to the average consumer, but this befuddlement is only exacerbated by the media’s own failure to grasp the full idea of what a PCP is.

The recently uncovered scandalous activities of many car dealers have had widespread implications after thousands of unfair deals were exposed.

Mis Sold Car Finance And PCP Agreements
a List Of Companies That Offer PCP Agreements

Here at mis sold car finance we have compiled a list of companies that offer car finance agreements.

360 Finance
Your Loan
Yorkshire Bank
Yes Car Credit
Vauxhall Finance
Ulster Bank
UK Loans Company
UK Loan Portal
UK Loan Company
The Finance Network
Tesla UK
Simple Personal Loans
Rufford Credit
Rainbow Finance
Premier Finance
PFP Professional Financing
Peter Gilbert Associates
Paragon Bank
Panic Loans
Origin Financial Services
Origin Direct
Arnold Clark 
Oodle Car Finance
On:Line Finance
Nationwide Building Society
Guarantor Loans
Greenlight Finance
Ford Credit
Finance Worx
Finance Tracker
Direct Auto Finance
Danske Bank
Cumberland Building Society
Credit Connect UK
Credit Acceptance UK
Creation Finance
Co-operative Bank
Coastal Credit
Close Motor Finance
Close Brothers
Click 4 A Loan
Marshall Motors
Cavendish Finance Company
Cars of Distinction
Carlyle Finance
Car Loan 4U
Car Finance Concierge
Car Finance Company
Car Credit UK
Cambridge & Counties Bank
Britannia Finance
BMW Financial Services
Bluesky Personal Finance
Blemain Group
Blackhall Vehicle Sales
Beech Finance
Bank of Scotland
Auto Trader
Arrange A Loan
Approved Car Finance
Alphabet (GB) Limited
Alpha Car Loans
Alliance & Leicester
Allclear Finance
Adverse Credit Car Loans
Accept Car Credit
AA Loans

Important information and links related to the mis selling of car finance (PCP agreements)

Below are some useful links in regards to mis sold car finance 

FCA report into the mis selling of car finance (PDF)

In March 2019 the FCA released its final findings on the mis selling of pcp agreements.


Vehicle finance agreements and Covid 19: guidance for firms