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Used Car Finance: Can You Still Claim?

It's not just for brand new BMWs. Used car finance agreements are actually more likely to contain hidden commissions.

The Car Finance Refund Team
November 26, 2025
2 min read

There is a misconception that DCA claims only apply to shiny new cars bought from main dealerships. In reality, the used car market was the "Wild West" of discretionary commissions.

Why Used Cars Are High Risk

Independent used car dealers often relied heavily on finance commissions to boost their margins on lower-value vehicles.

  • Higher Rates: Used car finance typically carries higher APRs (10-20%) compared to new car finance (3-7%).
  • More Discretion: With higher rates, there was more "wiggle room" for dealers to add markup.

Sub-Prime Lenders

Many used car buyers were directed towards "sub-prime" lenders if they had imperfect credit. These lenders often paid the highest commissions to brokers to secure the business, meaning vulnerable customers were hit the hardest.

Can I Claim?

Yes. The rules are exactly the same.

  • PCP or HP agreement?
  • Before Jan 2021?
  • Dealer arranged?

If yes, you can claim, regardless of whether the car was a £5,000 Ford Focus or a £50,000 Range Rover.

Written By

The Car Finance Refund Team

A collective of consumer rights advocates, legal researchers, and software engineers dedicated to helping UK drivers reclaim unfair car finance commissions.

Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice.

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