Featured on BBC One’s Northern Justice & Morning Live


Honda Claims: Quick Guide

  • Honda car customers who used a PCP financing plan after April 1, 2014, may be eligible to claim compensation for hidden costs that inflated their repayment fees.
  • The FCA has banned the practice of increasing the prices of PCP deals in order for salespeople to earn higher commissions.
  • If you think you have a claim, please get in touch. TLW can help you manage Honda PCP claims process on your behalf. We work on a no-win, no-fee basis, so if your claim is rejected, you owe nothing.
  • Join the thousands claiming who were affected by being mis-sold and make a claim today.
Feefo logo

Have you bought a new or used Honda vehicle since 1st April 2014?

Did you buy a Honda on a PCP finance agreement?

A personal contract purchase (PCP) is a form of hire purchase vehicle finance for individual purchasers. A PCP is designed so that the customer pays a lower monthly amount over the contract period. The customer is the registered keeper and legal owner of the vehicle, whilst the finance company retains an interest in the vehicle.

What is the issue with buying a Honda on a PCP finance agreement?

Recently banned by the Government-backed watchdog, the Financial Conduct Authority (FCA), many dealerships were found to have hidden increased commission fees within the PCP agreement. 

This practice meant the salesperson increased the price of the deal in order to earn a higher commission. This meant that the customer was left unknowingly paying for the salesperson’s and/or the lender companies’ higher commission.

Customers who had the amounts of commission hidden in their finance agreement repayment plan are encouraged to get in touch. You may have been subject to PCP mis-selling for your Honda vehicle.

Consequently, customers were often not told about the amount of commission paid, even though the commission has in effect increased the cost of the car. This is known as a ‘secret’ or ‘hidden commission’ and meant customers were paying more than they should.

  • When making the sale, instead of providing you with a variety of different financial payment options, the vehicle salesperson assured you that their financing was the “best option”.
  • You were not told by the salesperson about any commissions they received from your PCP agreement.
  • The precise commission they received from the PCP lending firm was not disclosed to you.

Honda PCP claim resolution starts with understanding your situation. Submit a claim online to TLW Solicitors now or speak to one of our team for a no-obligation discussion, to see if we can help you with a no-win, no-fee claim for compensation.

This is where the car dealer sells a financing agreement for a car without disclosing to you that they are receiving a commission or how much of a commission they are receiving.

The majority of buyers of vehicles recognise that the dealer or salesperson will make money off the sale, but they are often not made aware that they may also be paid by the financing company for the PCP finance arrangement itself.

To prevent any potential conflicts of interest between the customer and the auto dealer, the amount of this fee should be disclosed in full.

This is where the car dealer sells you a finance package for the car but does not tell you that they are getting a commission or just how large the commission they are getting is. Most customers expect the salesperson or dealership to make their money on the sale of the car, but they do not realise that they may also be getting a commission from the finance company for the PCP finance agreement that goes with it meaning that the customer is potentially paying more than they should.

Because of the high risk of there being a conflict of interest between the customer and the car dealer (the dealer recommending finance products based on the amount of commission as opposed to what is best for their customer), and to ensure full transparency for their protection, the exact amount of this commission should be disclosed to the customer.

If the payment of commission and the amount of that commission has not been explained, then the customer can claim compensation for mis-sold PCP car finance.

If you have taken out PCP car finance after 1st April 2014 and you think you may have been mis-sold, then get in touch with one of our specialist lawyers by phone on 0800 169 5925, Request a Callback or Make a Claim Online.

One of our team will then go through your case and explore your options in a free, no-obligation discussion.

We will contact the PCP finance company and get all the relevant documents and contracts on your behalf to see if you have a claim and if so, what it might be worth. We can still investigate your claim even if you no longer have the paperwork for the finance agreement.

Anyone who has taken out a car on PCP finance with any dealership for any manufacturer’s vehicle since 2014 is very likely to be affected.

Common manufacturers, we work with include:

This depends on many factors including the wording of the finance agreement, the interest rates that were charged, the amount of finance and how long ago the PCP finance agreement was signed. However, you could be entitled to thousands of pounds in compensation.

If you think that you have been mis-sold car finance, get in touch with our mis-selling team and we can discuss your claim and what it might be worth.

This varies from claim to claim. If the dealership and/or the finance company accepts responsibility for the alleged PCP mis-selling and agrees to put things right, then a compensation claim can take just a few months. If the allegations are disputed, then the claim could go to the Financial Ombudsman Service (FOS), where the case could take anywhere between 12 to 18 months to conclude.

If starting court proceedings is the best option, then that process again could take somewhere between 12 and 18 months.

There is no limit on the number of contracts you can make a claim for if each PCP finance agreement included hidden commissions.

It will cost you nothing to make an enquiry and once our team has reviewed your potential case and if we feel it suitable, then we will enter into a no-win-no-fee agreement. That means, if the case is unsuccessful, we will not charge for the time we have spent on the case.

‘Secret/hidden commission’ car finance mis-selling claims can be very complex. Our team of specialist lawyers has many years experience of dealing with a wide range of financial mis-selling cases.

Our lawyers are very familiar with the regulatory framework and the various financial institutions involved in these cases, such as the FCA and FOS. They are also very experienced in taking cases to court if necessary, to ensure that clients get the compensation they are owed.

  • Honda Jazz
  • Honda Civic
  • Honda CR-V Estate
  • Honda HR-V Hatchback
  • Honda e Hatchback

If you bought a Honda car on finance after 1st April 2014 and were not told about the amount of commission that the dealership or salesperson received from the company providing the finance plan, then you may be able to claim compensation for PCP mis-selling. We can assist you by handling PCP claim filing and management, requesting the relevant information from the parties involved.

Get in touch with our specialist financial mis-selling lawyers for a free no-obligation discussion about making a claim. Call 0800 169 5925 or complete the ‘callback’ or ‘make a claim online’ form.

It is important to get advice as soon as possible as strict time limits can apply.

Meet Our Team

Meet Sarah, who heads up our experienced Mis-Sold PCP Car Finance team.

Sarah and her colleagues are on hand to help with your claim.

TLW Solicitors pledge to:

  • Always fight your corner.
  • Explain anything you don't understand.
  • Provide full transparency on our charges.
  • Never ask for any upfront payment.
  • Recover the best compensation we can.
  • Keep your personal information safe.
  • Respond quickly to any queries.