Experts are calling for new rules to be introduced to ensure motorists are not hammered by additional costs when getting a car finance deal.
Drivers around the UK are waiting anxiously for an update on the future of the car finance scandal, as the Supreme Court prepares to make a judgement on a previous case.
The Financial Conduct Authority has announced that it will provide details on a potential compensation case after the Supreme Court delivers its verdict, which is expected to take place this year.
It stems from dealers benefitting from discretionary commission agreements (DCAs), which allowed them to receive higher commission payments without the driver knowing.
Do you have a story you'd like to share? Get in touch by emailing motoring@gbnews.uk
GETTY
|Experts are calling for more clarity on car finance policies
While millions of drivers wait for the terms of the potential redress scheme, experts are calling for standardisation when comparing car finance offers.
Paul Barker, motoring expert and editor at Auto Express, pointed to a "huge variety" of up-front payments, mileage limits and varying contract lengths.
He described these as disguising how good or bad the deal was, with drivers potentially paying more than they had expected to be charged.
When applying for car finance, drivers can be hit with a large up-front deposit and small monthly payments, or they could pay nothing in advance, while paying more every month.
PA | The expert said changes to car finance policies would make it easier for motorists to understand how much they would actually need to pay
Barker highlighted that it was difficult for drivers to compare different policies since there was such a wide range of deals tailored to individual circumstances.
He said: "It leads to a deal with an appealing headline figure catching your eye, only to have almost instant deflation when you see the small print attached to the offer, and you don't want to put your life savings down as a deposit."
However, the expert said a "headline figure" is almost never as good as it looks, especially when people are comparing deals for a new car.
To combat these issues, experts are calling for a standard starting point, such as a lease figure over four years at 10,000 miles a month, with three months of payments up-front.
LATEST DEVELOPMENTS:
Barker continued, saying: "I know that's not going to tie in with a lot of drivers' actual usage, yet it’s a starting point.
"Then by all means tailor the deal to your budget and circumstances, but at least give us a level playing field to begin with."
Experts have consistently noted that cash prices for a new vehicle "no longer reflect what most drivers pay".
A standard £30,000 payment is split over four varying monthly amounts depending on how the car is financed, how much is deposited, the contract length, mileage allowance and interest rate.
GETTY | Car finance prices can vary massively depending on personal requirements
Barker concluded: "Can we please have a nice, neat way of at least pulling together a shortlist of cars within budget from the unprecedented breadth offered across the industry?
"The number of car companies - established and the newer arrivals - models and powertrains already make it an overwhelming choice for some.
"Add over-complicated finance headline rates and it’s all just too much. The campaign for plain-English financial rates starts here!"