There is nothing quite like the thrill of setting off on a road trip in a new car. Whether it is a countryside drive, a family holiday, or simply the morning commute, owning a vehicle brings convenience and independence. But for many UK drivers, the excitement of getting behind the wheel may have masked the complexities of the deal that got them there.
Between 2007 and 2021, a significant number of cars were financed using Personal Contract Purchase (PCP) agreements. These deals were often marketed as flexible and affordable, promising low monthly payments and an easy path to driving a newer model. Yet for many, the fine print revealed terms they were not fully aware of at the time of signing. Now, more people are looking back at their agreements and wondering if their PCP deal was too good to be true.
The PCP Agreement in Simple Terms
A PCP agreement spreads the cost of a car over a series of fixed monthly payments. At the end of the contract, drivers are usually presented with three options:
- Hand the car back and walk away
- Use any equity towards a new agreement
- Make a final lump sum, often referred to as a balloon payment, to own the vehicle
This structure gave drivers the freedom to switch cars regularly without committing to full ownership. However, that same flexibility came with a complex set of terms that were not always explained clearly.
When a Deal Isn’t as Clear as It Seems
The problem with some PCP agreements is not necessarily the structure itself, but the way they were sold. In many cases, essential details were overlooked, downplayed, or left out altogether. That is where the issue of mis-sold car finance arises.
Common concerns include:
- Lack of transparency around commission
Many buyers were unaware that the dealer or broker was receiving commission from the finance provider. Sometimes this commission was linked to the interest rate, meaning the salesperson had an incentive to sell a more expensive deal. - Balloon payments not fully explained
Some consumers only realised late in the process that they would need to make a substantial payment to keep the vehicle at the end of the term. - No comparison of finance products
Instead of being offered a range of options, many drivers were given a single choice, limiting their ability to assess whether the deal was suitable. - Unclear contract terms
Issues like mileage restrictions, charges for wear and tear, and early termination penalties were often brushed over or not discussed in depth.
These oversights can leave drivers locked into expensive contracts, unaware of the true cost until it is too late.
Was Your PCP Agreement Mis-Sold?
If your car was financed between 2007 and 2021, it may be worth taking a second look at your agreement. You might have a claim if:
- You were not informed about commission being paid to the dealership
- The final payment required to own the car was not clearly communicated
- You felt pressured or rushed during the sale
- Only one finance option was presented, with no comparisons
- Key terms and conditions were not explained in full
Understanding how your agreement was structured and sold is essential. You may have entered the deal in good faith, only to discover later that critical details were left out.
A Closer Look at Black Horse Finance Claims
One finance provider that has been mentioned frequently in relation to mis-selling concerns is Black Horse. During the period between 2007 and 2021, this provider was involved in a large number of PCP agreements.
Some consumers have now submitted Black Horse finance claims, citing a lack of transparency around commission payments and interest rates. Although not every agreement was mis-sold, the volume of complaints points to broader issues within the car finance industry.
These claims have become part of a wider effort to hold finance providers and dealerships accountable for deals that may not have been in the buyer’s best interest.
Why It Still Matters in 2025
You may think that if your contract is finished or your car has already been returned, it is too late to raise concerns. In reality, you can still challenge the fairness of a past agreement. Many drivers are only now realising that their finance deal may not have been explained in full.
Raising concerns is not only about financial redress. It is also about promoting fairness, improving standards, and helping others avoid similar pitfalls. Consumers who speak up are encouraging greater transparency in future finance agreements.
How to Check If You Were Affected
If you are unsure whether your deal was fair, here are some practical steps to consider:
- Review your paperwork
Gather your original agreement, sales brochures, and any emails from the dealership or broker. - Check the final payment
Was the balloon payment clearly outlined and discussed? Did you fully understand the implications? - Look for commission disclosures
Were you told whether the salesperson or dealership would earn commission on the deal? - Assess the clarity of key terms
Were restrictions on mileage or early exit fees explained in full? - Reflect on the sales process
Did you feel informed, or were you rushed through the process?
By answering these questions, you can build a clearer picture of whether your PCP deal was sold fairly.\
What to Do Next
If you believe your agreement may have been mis-sold, consider the following:
- Use a free online eligibility checker to assess your situation
- Submit a formal complaint to the finance provider
- If unresolved, escalate the issue to the Financial Ombudsman
- Keep detailed records of all communication and agreements
You do not need to be a legal expert to challenge a finance deal. A straightforward review of your documents can often reveal whether something was not disclosed or properly explained.
Final Thoughts
Buying a car is a major financial decision. It is only fair that the agreement attached to it should be clear, honest, and in your best interest. For many drivers in the UK, that was not the case and they are now realising that the deal they trusted may not have been what it seemed.
Whether you are currently in a PCP agreement or finished one years ago, it is worth taking the time to review your contract. The rise in mis-sold car finance claims is not just about compensation. It is about setting a new standard for fairness in the car finance industry.
If your agreement was signed between 2007 and 2021 and something did not feel right, now is the time to revisit the fine print. A few simple checks could be the start of a much clearer financial future.
