Nearly two-thirds of motorists fear that getting a car on finance is about to become much harder after a regulatory investigation exposed serious concerns.
The Financial Conduct Authority has been probing the car finance industry over the past few years after instances of misconduct and overpayments.
New research has revealed widespread concern that borrowing will become more expensive, less accessible and more confusing for ordinary drivers.
The report detailed how drivers fear car finance could become unaffordable after the UK watchdog probe into car lending could cause prices to rise.
With household budgets already under pressure, many drivers said they are worried they'll simply be priced out of their next car.
More than one in five drivers warned that rising costs could force them to delay buying a new vehicle, or abandon the idea altogether. For many households that rely on cars for work, childcare or caring responsibilities, that could cause major disruption.
The research, carried out earlier this month, showed clear public anxiety as drivers wait for the FCA to finish its consultation on a potential redress scheme for those who may have been unfairly charged in the past.
The FCA announced this week that it would lift its pause on handling new complaints from May 31, 2026, two months earlier than originally planned.
Consumers have been waiting nearly two years for compensation following the FCA investigation
| PAThe pause has been in place since January 2024 while the regulator examined whether lenders and brokers failed to fully disclose commission arrangements, and whether that led to borrowers paying higher interest rates.
The UK finance watchdog has been consulting on a compensation scheme for customers who were treated unfairly through commission-linked interest deals.
The FCA admitted that some consumers have now been waiting nearly two years for answers, with final rules on any compensation scheme expected in early 2026.
Carmoola's survey also pointed to a sharp drop in confidence in the car finance sector, with almost three out of 10 drivers stating that they now trust lenders less than they did before the FCA launched its investigation.
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The car finance scandal has caused drivers to mistrust lenders
| GETTYYounger drivers appear especially worried about the move, with nearly a third of motorists aged 18 to 34 fearing that the UK is heading towards a new "mobility divide", in which only some people can secure fair and affordable borrowing, while others are left behind.
For younger workers who rely on cars for employment and independence, the idea of being locked out of ownership is particularly worrying.
Researchers detailed how the FCA's intervention has changed what borrowers expect from lenders. Carmoola CEO Aidan Rushby said the FCA's update finally brings "long-awaited clarity" for customers who have been stuck in limbo.
He suggested that the research showed people are increasingly concerned about being priced out of car ownership, stressing that transparency must be central to any reform of the sector.
Drivers have expressed concern over the impact the FCA investigation will have on car finance costs
| GETTYThe survey found transparency around fees and commissions was now the number-one priority for 52 per cent of borrowers, outpacing interest rates, which came second at 47 per cent.
Mr Rushby added: "With the pause on complaint handling now due to lift next May, it's vital that consumers receive fair, timely outcomes - especially at a time when affordability fears are rising, and trust in the sector is under real pressure.
"Our research shows drivers are worried about being priced out of car ownership, and transparency has never been more important. Carmoola was built with simple, upfront pricing and no hidden commissions, so we welcome efforts to raise standards and consistency across the industry."
He warned that this moment should be a "catalyst for meaningful reform", helping consumers feel confident that they're getting a "fair" deal.