Lawdonut

Can you imagine running a company without having a car and instead relying solely on public transport? For many small business owners, the thought alone is enough to cause stress.

Public transport often doesn’t align with the demands of entrepreneurs. Buses and trains can be delayed or cancelled; may not cover the areas you need to reach, and are time-consuming. Getting around town, meeting clients, or responding to emergencies becomes harder when you’re bound by fixed routes and timetables. Moreover, if your business requires you to transport tools, products, or paperwork, public transport can be highly impractical.

With so many challenges, it's no surprise that many businesspeople rush to their nearest vehicle dealerships as soon as their companies start to thrive. Owning a vehicle offers greater freedom and increased productivity. However, the road between limited flexibility and complete autonomy comes with a potential pitfall: mis-sold car finance. Understanding what this is and how to avoid falling victim to it is crucial for safeguarding your financial future.

Mis-sold car finance occurs when you're given a deal that isn't right for your needs or when critical details are not properly explained.

Mis-sold PCP car finance agreements became so common in the UK that, in 2017, the Financial Conduct Authority (FCA) started investigating them.

The probe was launched after reports indicated that many dealerships were engaging in irresponsible lending practices, including mis-selling, failing to explain key terms, and not conducting thorough affordability checks. The FCA's review aimed to assess whether car finance providers were adhering to regulatory standards and ensuring customers were treated fairly.