Why car finance compensation varies across the UK
If you’re thinking about making a car finance claim, one of your biggest questions is probably: how much could I get? While the average refund for mis‑sold car finance in the UK sits around £1,600, real payouts can range from just a few hundred to over £5,000.
Why the difference? It comes down to three things: the lender, the type of finance agreement, and the timing of your claim.
Let’s break down how these factors shape your potential payout — and how you can estimate what you might be owed.
1. Different lenders, different practices
Not all car finance providers used the same models — or the same commission structures. Some lenders allowed brokers to add more interest than others. Some required better disclosure. Others left it entirely up to the dealership.
That means the same car, bought through two different lenders, could lead to very different compensation results.
Lenders with higher payouts (based on public reports):
- Black Horse (Lloyds): Frequently used discretionary commissions; known for higher refund figures
- Close Brothers: High-interest agreements with limited transparency
- Motonovo: Many complaints tied to dealership-led sales with unclear fees
Other common lenders involved in claims:
Volkswagen Financial Services, BMW Financial Services, Santander Consumer UK, Toyota FS, Mercedes-Benz FS, CA Auto Finance, and Vauxhall Finance
Regardless of brand, your individual agreement will determine your refund amount — but some lenders had patterns that make payouts more likely or more generous.
2. PCP vs HP: the structure matters
The type of agreement you signed affects both the interest you paid and how the dealer framed the deal. Two of the most common car finance types are:
PCP (Personal Contract Purchase)
- Lower monthly payments with a balloon payment at the end
- Commonly mis‑sold due to confusion about ownership
- Interest often disguised or wrapped into balloon figures
HP (Hire Purchase)
- Higher monthly payments with ownership at the end
- Easier to understand, but still subject to commission-based mis‑selling
Payout tip: PCP agreements with unclear balloon payments or high APRs are often associated with the largest refunds.
3. Claim timing: early birds benefit
Timing matters — not just when you signed the agreement, but when you file the claim. Here’s why:
- Agreements signed between 2007 and 2020 are the most commonly eligible
- Claims filed before 4 December 2025 are protected under the FCA’s current pause rules
- Earlier submissions will likely be handled first once responses resume
The longer you wait, the more the system may get crowded. Acting now ensures your place in the queue — and gives legal partners time to prepare a strong case.
Extra factors that influence refund value
In addition to lender and contract type, these details can raise or lower your final payout:
- Loan size: Larger finance amounts mean more room for overcharges
- APR difference: The gap between your actual APR and the fair market rate determines overpayment
- Length of agreement: Longer terms = more months of overcharged interest
- Commission rate: If the broker earned high hidden commission, the claim is often stronger
Example payout ranges
Here’s what payouts might look like based on real UK data:
- £900–£1,300: Small HP agreements with slight interest markups
- £1,500–£2,500: PCP agreements with 3–4% inflated APRs
- £3,000–£5,000: High-value PCP with no disclosure and poor documentation
These ranges aren’t guaranteed — but they reflect the real-world experience of UK claimants who’ve filed with or without legal help.
What about multi-vehicle claims?
If you’ve financed more than one car, you may be able to claim for each agreement. Many legal teams are now helping customers build multiple complaints, especially when each deal was handled by a different dealer or lender.
Each claim is assessed individually, but multiple payouts are possible — and common — for long-time car owners who traded in and financed regularly.
Estimate your payout safely
The best way to get a reliable estimate is to use a claims checker connected to finance databases. These tools can:
- Retrieve agreements from years ago (no paperwork needed)
- Compare your APR to market standards
- Build a projection of what you could recover
This approach is safer than guessing — and much faster than waiting for paperwork that might not exist anymore.
In short: every agreement is different
Car finance refunds aren’t one-size-fits-all. Your lender, your contract, and your timeline all play a part. But what matters most is this: if your deal wasn’t explained properly, and if you were charged extra interest for someone else’s commission — that’s not right. And you don’t have to accept it.
Check your eligibility now. It costs nothing, and it could be the first step toward getting back thousands you didn’t even realise were yours.
