What Kind of Compensation Can You Expect?
One of the first questions people ask when they hear about PCP claims is: "How much could I get back?" The honest answer is that it depends on the specifics of your agreement. But we can give you a realistic picture.
Most successful car finance claims result in compensation ranging from £500 to £5,000. Some claims — particularly those involving high-value vehicles, long agreement terms, or very large interest rate markups — have paid out even more.
The FCA's own research found that the average consumer overpaid by around £1,100 due to hidden commission arrangements. That figure is an average across millions of agreements, so your individual amount could be higher or lower.
What Determines How Much You Receive?
Several factors affect the size of your compensation:
1. The Commission Markup
This is the single biggest factor. The larger the gap between the lender's base interest rate and the rate you were actually charged, the more you overpaid — and the more you can claim back.
If the lender's base rate was 4% but you were charged 9%, that 5% markup generated significant extra interest over the life of the agreement. All of that excess interest is potentially recoverable.
2. The Amount Financed
A hidden commission on a £30,000 finance agreement will produce a larger claim than the same percentage markup on a £10,000 agreement. The maths is straightforward: higher principal means higher absolute interest charges.
3. The Length of Your Agreement
Most PCP agreements run for 24 to 48 months. The longer the term, the more months of inflated interest you paid, and the larger your potential refund.
4. The Commission Structure
Different lenders used different commission models. Some paid a flat fee to the dealer. Others used the DCA model where commission was directly linked to the interest rate charged. DCA-based arrangements typically result in higher claims because the overcharging was built into every monthly payment.
5. Whether You Had Multiple Agreements
If you have had several PCP or HP agreements over the years, you may be able to claim for each one separately. People who change their car every few years often find they have two, three, or even four valid claims.
Realistic Payout Examples
Here are some representative scenarios based on common agreement types:
Example 1: Mid-Range Family Car
- Vehicle: Ford Focus
- Amount financed: £12,000
- Term: 36 months
- Interest rate charged: 7.9%
- Lender's base rate: 3.5%
- Estimated compensation: £800 - £1,200
Example 2: Premium SUV
- Vehicle: BMW X3
- Amount financed: £28,000
- Term: 48 months
- Interest rate charged: 9.5%
- Lender's base rate: 4.0%
- Estimated compensation: £2,500 - £4,000
Example 3: Used Car on HP
- Vehicle: Vauxhall Corsa
- Amount financed: £8,000
- Term: 48 months
- Interest rate charged: 12.9%
- Lender's base rate: 5.0%
- Estimated compensation: £1,500 - £2,200
Example 4: Multiple Agreements
- Driver with 3 PCP agreements over 8 years
- Combined amount financed: £55,000
- Estimated total compensation: £3,000 - £6,500
These figures are illustrative. Every case is different, and the exact amount depends on the factors listed above.
What About Fees?
Most reputable claims companies, including ours, operate on a no win, no fee basis. This means:
- You pay nothing upfront
- If your claim is unsuccessful, you owe nothing
- If your claim succeeds, a percentage fee is deducted from your compensation
Our fee structure is transparent and capped in line with FCA regulations. You will always know the maximum fee before you agree to proceed. There are no hidden charges and no surprises.
You can read more about how no win, no fee works for car finance claims.
What Does Compensation Include?
Your compensation is typically made up of:
- Refund of excess interest — The difference between what you paid and what you would have paid at the lender's base rate
- Commission refund — The commission payment the dealer received that was not disclosed to you
- 8% simple interest — Added to the refund amount to account for the time you have been without the money (this is the standard FOS rate)
In some cases, additional compensation may be awarded for distress and inconvenience, particularly if the mis-selling led to financial difficulty.
Can I Claim If I Settled Early?
Yes. Whether you completed the full term of your agreement, settled early, voluntarily terminated, or handed the car back — you can still claim. The mis-selling happened at the point of sale, and your right to compensation is not affected by what happened afterwards.
Can I Claim If I Cannot Remember the Exact Details?
Absolutely. You do not need to remember the precise interest rate or commission amount. Our team can obtain this information from the lender as part of the claims process. All we need to get started is some basic information about you and the vehicle.
Check our guide on what documents you need — you might be surprised at how little is required.
How to Find Out Your Specific Amount
The most reliable way to find out what you are owed is to start the claims process. Our team will:
- Review the details of your finance agreement
- Identify the commission arrangements that were in place
- Calculate the excess interest and commission paid
- Give you a clear picture of your expected compensation
This initial assessment costs you nothing and carries no obligation.
Start Your Claim Today
If you took out car finance through a dealer, there is a strong chance hidden commission inflated your payments. The average claim is worth over £1,000, and many are worth considerably more.
Submit your details now to find out how much you could be owed. The check is free, the process is simple, and there is no financial risk. You can also see how our claims process works or speak to our team for a personal assessment.