What is the average PCP compensation amount?

The FCA estimates the average DCA overcharge per consumer at approximately £1,100. However, this is a market-wide average across all agreement sizes and lenders. Individual claim amounts vary significantly based on the finance amount, APR, and agreement term. A £25,000 agreement at 12% APR over 48 months could produce a claim of £3,000–£4,500 including statutory interest. Smaller agreements at lower rates will be closer to £400–£800.

What factors determine how much PCP compensation I will get?

Four factors determine your PCP compensation amount: (1) the total amount financed — larger loans attract larger DCA overcharges; (2) the APR on your agreement — higher rates mean more interest and a larger 25% DCA uplift; (3) the length of the agreement — longer terms accumulate more interest; and (4) the years since the agreement — statutory interest at 8% per annum accumulates from the agreement date, so older agreements attract more statutory interest.

Does the FCA's £1,100 figure mean I will get exactly that?

No. £1,100 is a market-wide average across all agreement types and sizes. Your specific compensation depends on your individual agreement's amount, rate, and term. Use the calculator on this page to get a personalised estimate. Many claims are significantly above £1,100 — particularly for agreements over £15,000 or at higher APRs.

Average PCP Compensation 2025 — How Much Is a Typical Car Finance Claim Worth?

The bottom line

What is the average PCP claim worth?

The FCA estimates the average overcharge at £1,100 per consumer — but this is a market-wide average that includes small, low-rate agreements pulling the figure down. For a typical UK PCP agreement of £15,000–£20,000 at 9–12% APR over 36–48 months, personalised estimates using the FCA methodology typically fall between £800 and £2,500. Add statutory interest at 8% per year from the agreement date, and agreements from 2015 or earlier can be worth significantly more.

🏦 FCA avg: £1,100✓ Yours may be higher8% p.a. stat interest added

Personalised calculator

What is YOUR specific PCP claim worth?

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Personalised PCP Compensation Calculator

FCA DCA uplift (25% of total interest) + statutory interest at 8% p.a.

Finance amount borrowed (£)

Interest rate (APR %)

Finance term (months)

Agreement year

Estimated total interest paid—

DCA overcharge (25% uplift)—

Statutory interest (8% p.a.)—

Your total estimate—

vs FCA market average—

Methodology: FCA average DCA uplift 25% of total interest. Statutory interest 8% p.a. from agreement mid-point to 2025. Indicative only.

Real-world examples

PCP compensation examples at different loan sizes

Agreement detailsDCA overcharge+ Statutory interestTotal estimate

£8,000 at 7.9% APR, 36 months, 2019£378+£181£559

£12,000 at 9.4% APR, 36 months, 2018£676+£378£1,054

£16,000 at 9.9% APR, 48 months, 2017£1,193+£764£1,957

£22,000 at 11.9% APR, 48 months, 2016£1,966+£1,415£3,381

£30,000 at 12.4% APR, 60 months, 2015£2,795+£2,236£5,031

Statutory interest calculated at 8% p.a. from agreement mid-point to May 2025. All figures are estimates using FCA methodology.

What affects your amount

The four factors that determine your compensation

1. Finance amount

The bigger the loan, the bigger the interest total, and the bigger the 25% DCA uplift. A £25,000 loan generates roughly three times the DCA overcharge of an £8,000 loan at the same rate.

2. Interest rate (APR)

Higher APR means more interest paid over the term. Since the DCA overcharge is 25% of total interest, every percentage point of APR adds directly to your potential payout. 12% APR vs 8% APR on the same loan = ~50% more compensation.

3. Agreement length

A 48-month agreement accumulates more interest than a 24-month one — so a longer term means a larger base for the 25% uplift calculation.

4. Years elapsed

Statutory interest at 8% per annum runs from approximately the mid-point of the agreement. A 2015 agreement has accumulated 10 years of 8% statutory interest on top of the DCA overcharge — significantly increasing the total.

FAQs

Average PCP compensation — questions answered

Why does the FCA say £1,100 but my estimate is higher?+

The FCA's £1,100 figure is a market-wide average across all motor finance agreement sizes — from small used-car deals of £4,000 at low rates, to prestige vehicles at £35,000+ at high rates. Larger loans at higher rates will significantly exceed the average. The FCA's figure was also calculated early in the review process, before the full scope of the Supreme Court's October 2024 ruling was known — actual payouts may be higher once the formal redress scheme is established.

Can I have multiple claims if I had several PCP agreements?+

Yes — each separate PCP or HP agreement is a separate claim. If you had three qualifying agreements between 2012 and 2020, you could have three separate compensation amounts. Some people have accumulated four or five agreements over a decade of changing cars, making their total potential compensation substantially higher than the per-agreement average.

Will I definitely get the amount my calculator shows?+

Not necessarily — the calculator produces an estimate based on the FCA's published methodology. Actual compensation will be determined by the FCA's formal redress scheme or court proceedings, and may differ based on the specific commission arrangement in your agreement, your lender's evidence, and the scheme's final methodology. The estimate gives you a reliable indication of the scale of your claim.

Related guides

Disclaimer: Compensation estimates are indicative only, based on FCA published methodology. Actual awards will be determined by the FCA redress scheme or court. Not legal advice.