Aug 1, 2025, 1:59 PM
Aug 1, 2025, 1:59 PM
Supreme Court ruling threatens to upend the car finance market
- The car finance scandal in the UK resembles the past PPI crisis, drawing public attention to commission payments to dealers.
- Three motorists appealed that they were uninformed about commission terms affecting their financing options, highlighting dealer incentive conflicts.
- The impending Supreme Court ruling could reshape the car financing industry, potentially leading to firm insolvencies and increased consumer costs.
In the United Kingdom, the unfolding car finance scandal could become as pervasive as the Payment Protection Insurance (PPI) crisis. This situation stems from a Supreme Court decision regarding commission payments made to car dealers for arranging finance agreements. Interest in this case heightened following a Court of Appeal ruling last year, where three motorists argued they were not made aware that dealers were receiving substantial commissions, which could be as much as 25% of the interest on the loans. The consumers contended that the primary objective for dealers was securing financing that appeared affordable to buyers.
Opinions
You've reached the end