Couples and Car Loans: Avoiding Mis-Selling Mistakes Together

Car finance can be a practical way for couples to manage the cost of a new vehicle. Whether it’s for commuting, family use, or shared travel, many people choose to spread the cost through monthly repayments rather than paying outright. But when two people enter into a financial agreement together, there are twice as many considerations to get right and potentially twice the risk if something goes wrong.

In recent years, concerns around mis-sold finance have grown, particularly around Personal Contract Purchase (PCP) agreements. Couples who sign without fully understanding the terms may find themselves locked into expensive or unfair contracts. This guide explores how mis-selling happens, what red flags to look for, and how couples can avoid common pitfalls together.

The Shared Nature of Car Finance

When two people apply for a car loan or jointly agree to finance a vehicle, the financial responsibility is shared. That might sound simple, but in practice, it means both parties need to:

• Understand the terms and conditions in full
• Agree on usage and mileage limits
• Be clear on who is responsible for payments
• Know what happens if one person wants to exit the agreement

Misunderstandings about any of these can cause stress, disagreements or unexpected costs especially if the finance deal was mis-sold.

How Mis-Selling Happens

Mis-sold car finance often stems from a lack of transparency or poor communication at the point of sale. This can affect individuals or couples equally. Some of the most common forms of mis-selling include:

• Not disclosing that a commission influenced the finance rate
• Failing to explain what happens at the end of a PCP agreement
• Adding optional extras without proper consent
• Not offering a choice of finance options
• Rushing the customer into a decision without time to review the paperwork

If either person in the couple feels unclear, pressured or misinformed, that alone can be a sign that the agreement may not have been fairly presented.

Practical Steps for Couples to Stay Protected

Before entering into a joint car finance agreement, couples should take several proactive steps to ensure everything is clear and fairly explained.

1. Review the agreement together
Go through the entire document with both names in mind. Even if only one person signs, the vehicle may be shared, and it is important both parties understand the commitment.

2. Ask about commission
Ask directly whether the finance provider or dealer received commission for arranging the deal. If the rate you were offered was influenced by a commission and this was not disclosed, you may be eligible to consider car finance claims.

3. Consider your long-term plans
Talk about how long you intend to keep the car, what kind of mileage you’ll use, and how your budget may change in the future. These conversations help determine whether PCP, hire purchase or another option is better suited.

4. Request clear breakdowns
Get a full breakdown of the monthly payments, total repayment cost, balloon payment (if applicable), and charges for early exit or excess mileage.

5. Avoid pressure to sign on the spot
If a dealer pushes you to sign quickly, take that as a warning sign. Take time to read the agreement in full and consult a financial adviser if needed.

Spotting Red Flags in the Deal

There are several signs that your finance deal may not be all it appears. Be on the lookout for:

• Unclear or missing explanations about interest rates
• Lack of options presented, only one finance product offered
• Verbal claims that do not match the written contract
• Unexpected add-ons or optional extras included
• Statements like “this is the only deal you’ll get today”

If any of these occurred, and your agreement was signed between 2007 and 2024, you may be eligible to explore PCP claims or car finance claims depending on the structure of your deal.

What to Do if You Suspect Mis-Selling

If you and your partner are concerned that you were misled, or if the costs are significantly higher than expected, it is worth reviewing the agreement carefully. Keep records of:

• Any communication with the lender or dealership
• The original contract and any amendments
• Notes from conversations, including any quotes or summaries

You may also wish to compare the deal you received with similar offers from other lenders. If your interest rate is notably higher, or if you were given no choice of products, this could strengthen your suspicion.

Raising a concern does not automatically mean you’ll receive a refund or compensation. However, more and more consumers are successfully submitting car finance claims after realising they were not given fair or transparent terms.

Communication Is Key

Couples should approach car finance as a joint decision, not simply a transaction. Misunderstandings between partners can be just as damaging as unclear terms from lenders. Be honest about expectations, finances and long-term goals. It’s also a good idea to decide in advance how you would handle situations like:

• One person wanting to sell or change the vehicle
• Difficulty making payments due to job changes or other financial shifts
• A breakdown in the relationship or household change

Being aligned from the start can make any unexpected events much easier to navigate later.

Final Thoughts: A Shared Approach to Financial Clarity

Car finance can be a helpful and manageable tool for couples, but only when both people have a full understanding of what they’re signing up for. The growing number of PCP claims in the UK has highlighted how easy it is for even well-informed buyers to be misled.

If your agreement was signed between 2007 and 2024, and you believe key information was hidden or unclear, a PCP claim may be worth exploring. But prevention is always better than cure.

When you work together, ask the right questions, and hold your lender or broker to a high standard, you give yourselves the best chance of securing a fair deal. Transparency, communication and shared understanding are the true cornerstones of a successful finance journey and they apply just as much in a relationship as they do in a financial contract.