One in three brits regret their car finance deal as rising costs bite, survey reveals

In the poll of 250 adults who purchased vehicles through Personal Contract Purchase (PCP), Hire Purchase (HP) or similar finance deals since 2015, 34% admitted they now feel they got poor value for money. While 46% of those surveyed said they were satisfied with their original deal, nearly half reported they would choose a different finance product or payment method if given the chance.

The research also revealed that one in five consumers did not fully understand the total cost and terms of their finance agreement when signing. Another 41% said they only "mostly" understood the deal, admitting that some details were unclear.

This reflects growing concerns from consumer groups about the transparency of car finance agreements. Many drivers prioritise the monthly payment amount and car features, sometimes overlooking the total interest and fees involved.

A growing issue amid rising costs

The survey also highlighted the impact of the UK’s rising interest rates and broader cost-of-living crisis. More than half of respondents said the increasing financial pressures had made their car finance payments harder to afford. This has led some to reassess whether the deals they agreed to still represent fair value.

"When I took the finance deal, the monthly payment seemed fine. But now, with everything going up, it’s a struggle," said one respondent from Manchester. Another, based in Leeds, commented: "At the time, it seemed like the only way to afford the car I wanted. Looking back, I wish I had thought more carefully about the long-term costs."

Are drivers willing to take action?

Despite these regrets, only a portion of drivers are prepared to take further steps. When asked what they would do if they discovered they had overpaid or been mis-sold to, 44% said they would consider seeking advice or taking action. However, 36% said they would not pursue the matter, and 20% remained unsure.

Industry experts suggest that reluctance to act may stem from uncertainty about where to get reliable information or a belief that challenging a past finance deal is too complicated.

Calls for greater clarity and consumer awareness

A spokesperson for PCP Claims commented: "These results show that many drivers have lingering concerns about the finance deals they agreed to, particularly as financial pressures continue to mount. We would always encourage people to review past agreements carefully and seek impartial advice if they believe something wasn’t explained clearly at the time."

Consumer finance analysts say that as older finance agreements reach the end of their terms — especially those with large final balloon payments — the number of drivers reassessing their deals is likely to increase. This trend may also be driven by greater media coverage of financial transparency and fairness issues within the car finance industry.