Millions will get a windfall over car finance. Research helps us understand what they’ll do with it

By Stuart Mills, Assistant Professor of Economics, University of Leeds

Millions of motorists across the UK could be in line for payments of around £700 after car dealers mis-sold finance to earn commission. Finance providers stand to lose billions compensating consumers after the scandal.

The UK regulator, the Financial Conduct Authority (FCA), recently announced that lenders must compensate buyers who took out finance for a new or secondhand car. Millions paid more than they should have because of secret…

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