Car Finance Affordability Checks: When Lenders Should Have Said No
If you were approved for car finance when you were already juggling bills, overdrafts, or other credit, you might be wondering: how did they say yes to this? You’re not alone. Motor finance complaints have exploded — the Financial Ombudsman Service (FOS) received 76,160 complaints about hire purchase (motor) in 2024/25, up from 21,441 the year before.
A big chunk of these disputes comes down to one question: did the lender properly check affordability?
What “affordability checks” should mean in real life
A lender isn’t just meant to check you can make the monthly payment on paper. Under FCA rules and guidance on creditworthiness (including affordability), firms should assess whether credit is affordable based on your situation — not a best-case fantasy.
In plain English: if the agreement would realistically leave you short for essentials, push you further into debt, or only work if everything goes perfectly, that’s a problem.
Signs your car finance might have been unaffordable
You don’t need to be a finance expert to spot the red flags. Think back to the time you took the agreement out:
You were relying on an overdraft, credit cards, BNPL, or loans to get through the month.
Your income wasn’t stable (commission-heavy, self-employed dips, recent job change).
You had existing debts and the finance payment tipped things over.
The lender didn’t ask much — or anything — about outgoings, dependants, rent/mortgage, or other credit.
You could only make payments by cutting back on essentials or borrowing elsewhere.
If any of that feels familiar, the lender may have fallen short of what’s expected.
What you can do next (without the stress)
Gather the basics: your lender name, agreement type (PCP/HP), start date, monthly payment, and any emails or paperwork.
Map your situation at the time: rough income, major bills, and any debt/overdraft use.
Get your agreement checked: If affordability wasn’t handled properly (or commission and costs weren’t made clear), you may have grounds to complain.
FAQs
Does being accepted automatically mean the finance was affordable?
No. Approval isn’t proof it was done properly. If the checks were weak (or ignored warning signs), you can still challenge it.
What if you never missed a payment?
You can still have an affordability issue — lots of people keep paying by using overdrafts, credit cards, or cutting essentials.
What if it was years ago?
It can still be worth checking, especially given how widespread motor finance complaints have become.
How much could you get back?
It depends on your agreement and what went wrong — outcomes vary case by case.
Ready to check your car finance?
If your agreement only worked by stretching your budget to breaking point, don’t brush it off. Start your claim check here: Mis Sold PCP Finance or speak to the team via Contact.
