The UK car finance scandal involves millions of motorists potentially mis-sold car finance, specifically through "discretionary commission arrangements" (DCAs) between 2007 and 2024. Dealers often hid commission rates by hiking interest rates, leading to billions in expected compensation payouts. While a 2025 Supreme Court ruling limited the scope, the Financial Conduct Authority (FCA) is still setting up a major, potentially automatic, redress scheme.
The best way to find out is to check through your car finance paperwork, if you still have it. If this isn't possible, you can submit a complaint and your lender will contact you if you're eligible. Even if you're not sure and choose not to complain, you should still get compensation if your agreement included a DCA.
Yes — people have actually seen money from mis-sold car finance deals, though experience varies widely. Car finance commission mis-selling has dominated UK headlines and social feeds.
Auto lending is in turmoil, with delinquencies and defaults rising across income levels and credit tiers. Some 2.2 million cars have been repossessed so far this year — the highest number since the Great Recession.
Yes, for tax years 2025 through 2028, car loan interest is tax deductible as long as you, the car and your car loan meet all the criteria. Is the interest on a car loan tax deductible for a used car that's “new” to me? In this case, because it is not a new vehicle, it's not considered deductible car loan interest.
Yes, you can cancel car finance and return a financed car, often through a "voluntary repossession" (surrendering it) or voluntary termination (for PCP/HP if 50% paid), but it usually has significant credit score damage and you're still liable for the loan balance (a "deficiency balance") after the lender sells the car. It's a last resort after trying other options like refinancing or trading in.
Individuals whose adjusted annual income is no more than $100,000 — it's $200,000 for joint filers — can deduct the interest on an auto loan for a new car with final assembly in the United States. The benefit, which can be taken in addition to the standard tax deduction, will apply only between 2025 and 2028.
Federal Reserve data shows that about 23% of Americans have no debt.
The 20/3/8 rule is a car-buying guideline suggesting you put 20% down, finance for 3 years or less, and keep your total monthly car expenses to 8% or less of your gross income, helping to ensure you buy reliable transportation without overspending and can still invest in other goals like retirement. It's a tool to avoid being "underwater" on your loan (owing more than the car's worth) and to prioritize financial health over luxury vehicles.
Auto dealerships make a lot of money off of financing. They act as intermediaries to connect their customers with banks, credit unions and captive lenders (the financing arm for automakers). In turn, they may earn either a flat fee for each loan referral or a portion of the interest through what's called a rate markup.
The regulator previously suggested motorists could receive less than £950 per deal, but it now says the average will be about £700 per agreement. Lenders could pay out £8.2bn in compensation.
The safest option is to purchase from an OMVIC registered dealer, as they are required to sell lien-free vehicles. If you choose to buy privately, take steps to protect yourself by conducting a lien search and avoiding curbsiders. Remember, knowledge is your best protection.
If you have previously financed your vehicle and you believe you have been mis-sold an agreement for the non-disclosure of commissions received by the dealership, or you were inadequately informed of the hidden costs and interest rates, you could be eligible to receive compensation.
Depreciation. Cars reportedly lose 20% of their value in the first year of ownership and retain just 40% of their original value after five years. Clearly, that is not a good investment. “Your goal should be to buy the least expensive car. Period,” said Orman. “That should steer you to a used car rather than a new car. ...
The 11-word phrase often cited to stop debt collectors is "Please cease and desist all calls and contact with me, immediately," which leverages your rights under the Fair Debt Collection Practices Act (FDCPA) to halt most communication, though it must be sent in writing via certified mail to be legally binding, and collectors can still notify you of lawsuits.
There's no minimum credit score required to get an auto loan. However, a credit score of 661 or above—considered a prime VantageScore® credit score—will generally improve your chances of getting approved with favorable terms. For the FICO® Score Θ , a good credit score is 670 or higher.
It may be easier to secure a loan for a new car than it is for a used car, and new car loans often come with lower interest rates. Used cars can be a good fit if you're on a budget and they generally cost less to insure; however, interest rates for used car loans are often higher than for new car loans.
The policy, enacted as part of Trump's "big, beautiful bill," allows eligible taxpayers to deduct up to $10,000 a year in car loan interest on new, U.S.-assembled vehicles purchased between 2025 and 2028.
Refunds should be larger in 2026 thanks to the tax policy changes under July 2025's federal H.R. 1 legislation, the One Big Beautiful Bill Act, and the government's decision not to factor tax breaks into the amounts withheld from paychecks in 2025, according to an August analysis by David Kelly, chief global strategist ...