Car finance is now one of the most popular ways in which drivers purchase their vehicles in the UK.

RICHMOND PARK, BOURNEMOUTH / ACCESS Newswire / January 5, 2026 / In particular, Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements are being used when these are not the most suitable option. Customers are left out of pocket and left wondering whether they have been mis-sold car finance. Unfortunately, for some, this is a situation that only becomes clear to the customer some time after they have signed the finance agreement.

Mis-sold car finance is where a customer has not been given clear, fair and/or complete information prior to entering into a finance agreement. These cases are rather common and are often caused by the fact that a customer was not told about all of the most important aspects of the finance agreement, or they were otherwise poorly explained, or they were just unsuitable in the first place.

Information explaining how car finance may have been mis-sold is available at https://www.mis-soldexpert.co.uk.

What Does Mis-Sold Car Finance Mean?

Car finance might have been mis-sold if, at the time you took it out, you were given a poor explanation of the deal. This includes things like the costs, risks, terms, and options for your hire purchase or PCP agreement that affect the price of the product, and the consequences of falling behind with your repayments.

But mis-selling could also have happened if you weren't told enough to be able to compare what was on offer with other deals, or you weren't told about factors affecting the total you would end up paying that might have made a difference to your decision.

Common Ways Car Finance Is Mis-Sold

One is commission payments. Some dealers received commission from lenders for arranging finance deals, but this was not disclosed to the customer. In some cases, the commission payment may have increased the interest rate that was charged to the customer, meaning they paid more for the finance than they needed to, but were not aware that this was the case.

Another thing is whether it was affordable. Car dealers should not have offered an agreement unless it was affordable. If they failed to check someone's income and outgoings, or pushed the customer into a deal because of financial issues, then the agreement may have been unsuitable.

Problems with PCP and HP Agreements

PCP agreements are often advertised with low monthly payments, which can be appealing. However, some customers were not clearly informed about the final balloon payment required to own the car, or the conditions attached to mileage limits and vehicle condition. This has led some drivers to face unexpected costs at the end of their agreement.

HP agreements may also be mis-sold if customers were not clearly told how much they would repay overall, including interest, or if alternative options were not properly explained. A lack of clarity can prevent customers from making informed choices.

Sales Pressure and Poor Explanations

Mis-sales could also have happened in circumstances of overbearing pressure. Some people report feeling "rushed" at the point of sale, which some firms claimed were time-limited opportunities, or were led to believe they could not get a car unless they took the finance agreement. Other examples include customers having "no time to read or ask questions".

There are examples of key information, such as early termination charges, penalties or prohibitions, not being presented "clearly" to the customer, so they only become aware of significant terms once the contract is in play.

Why Awareness Is Important

Knowing how car finance can be mis-sold can help educate drivers and raise awareness of potential pitfalls, helping to make you more vigilant in the future. With car finance continuing to form a large part of ownership for almost all drivers in the UK, clear information and good decision-making are critical.

E-mail: info@mis-soldexpert.co.uk

Company Address: 1 Queens Park Gate, 86 Richmond Park, Bournemouth, Dorset, BH8 8TQ

SOURCE: Mis-Sold