PCP can be a perfectly fair way to finance a car when it’s explained properly. The problem is, plenty of people were sold deals without clear information, proper checks, or honest sales conversations. That’s one reason motor finance complaints have surged in the UK, with the Financial Ombudsman highlighting major increases in areas including motor finance commission.

Below are the most common tactics that can cross the line and breach UK standards (including FCA expectations around clear information, fairness, and affordability).

1. “It’s only £X per month” while the real cost stays vague

If the salesperson keeps bringing you back to the monthly payment, but doesn’t clearly explain the APR, total amount payable, fees, and how the figures were reached, that’s a red flag. You deserve to know what the agreement will cost you overall — not just what leaves your bank each month.

2. Hidden commission that nudges your interest rate up

One of the biggest issues is commission that isn’t properly disclosed — especially where it may have influenced the interest rate you were offered. If you weren’t told the dealer/broker was being paid (or how that could affect the deal), the relationship between the lender and seller may not have been transparent. The FCA has been actively addressing unfair motor finance commission issues and consulting on an industry-wide redress approach.

3. “Quick approval” with weak affordability checks

If you were waved through without meaningful questions about your income, outgoings, and existing credit, the lender may not have assessed affordability properly. FCA rules on responsible lending are clear: lenders should check creditworthiness and affordability, not guess it.

4. Add-ons slipped in (or presented as “required”)

Gap insurance, warranties, service plans, paint protection — extras can be fine if you choose them. It becomes a problem if they were bundled into the finance, rushed through on a tablet, or described as mandatory when they weren’t.

5. The balloon payment brushed aside

PCP only makes sense when you understand the end options: hand it back, refinance, or pay the balloon (optional final) payment. If that final figure wasn’t properly explained — or you were pushed into believing you’d definitely have equity — you may have been misled.

6. Mileage, wear-and-tear, and early exit not explained

If you weren’t warned clearly about mileage caps, damage charges, or the cost of ending early, you couldn’t make an informed choice. That lack of “adequate explanation” is exactly where mis-selling often sits.

Next steps

If you think your PCP wasn’t sold fairly, take 2 minutes to check. Start with Mis-Sold PCP Finance it’s no win, no fee, and you could be owed money back in £.