PCP still dominates
Around 80% of new car sales run on PCP in 2026, essentially unchanged from 2023. Used-car PCP has grown fastest — up 22% year-on-year — as balloon-payment awareness has spread.
APRs have started to come back down
Bank of England base rate cuts through 2024-25 have finally filtered into car finance APRs. Prime rates that peaked around 12.9% in late 2023 are now averaging 9.9-11.9% for good credit customers.
The FCA motor-finance compensation ruling
The 2024 Supreme Court judgment on dealer commission disclosure continues to work through the system. Many drivers who bought cars on finance between 2007 and 2021 may be entitled to compensation — check with the Financial Ombudsman Service.
EV finance normalising
Manufacturer subsidies on EV PCP deals have narrowed as production has ramped. Used EV supply has grown fast, dropping prices and making used-EV finance genuinely competitive with petrol-equivalent HP for the first time.
