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What does the Supreme Court's car finance verdict mean for you?
Western Mail
|August 20, 2025
YOUR CONSUMER RIGHTS CHAMPION
The Supreme Court recently reached a decision on car finance complaints that had huge implications for anyone who has bought a car on finance over the last decade or two.
Ultimately, the court decided that hidden commission on car finance loans was not unlawful, saving the industry anywhere up to £40billion in compensation. However, the court did uphold one aspect of the claim where they felt an individual had been treated unfairly.
Here's my guide to car finance, commission and compensation.
Why is car finance in the news?
Car finance - lending money to help you buy a car in part or in full - is big business. In 2023 alone, £52billion was lent to people to fund purchases of both old and new vehicles.
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