A leading motoring expert has warned that drivers may still be overpaying for their car finance, despite the industry being placed under a microscope following the mis-selling scandal.
The car finance industry has come under intense scrutiny in recent years after millions of drivers were found to have been overcharged in commission arrangements.
Speaking to GB News, one car finance expert said motorists were still paying too much, namely the price buyers actually pay for the vehicle itself.
Pat Hoy, founder of Insider Car Deals, stated that although the Financial Conduct Authority (FCA) has banned the use of discretionary commission agreements, a "bigger problem" remains.
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He said that two customers can walk into a car dealership and pay "thousands of pounds" difference for the same vehicle, noting that this "isn't a fair market".
"The reality is simple: most drivers don’t know what a genuinely strong deal looks like. Until pricing becomes more transparent, many buyers will keep paying far more than they need to," the expert added.
Analysis from Insider Car Deals shows that some dealerships can place a hefty premium on a vehicle compared to its actual list price.
It found that drivers could see discounts of up to 36 per cent on more than half of all new cars when accounting for dealer discounts and manufacturer incentives.
Experts have warned that drivers are still being overcharged on car finance, despite a crackdown on exploitative practices
|GETTY
A huge £11,750 difference can be seen between the £33,050 list price of a Vauxhall Corsa Electric Ultimate, which can be purchased for £21,480.
Similarly, a Peugeot 2008 Hybrid GT has a list price of £35,020, even though it can be bought for £24,658 - a potential saving of £10,300.
Mr Hoy emphasised that drivers may not see any of the lower prices, even for some of the most popular vehicles, like the best-selling Ford Puma, where there could be a potential saving of almost £3,000.
Tanya Sinclair, chief executive of Electric Vehicles UK, said many motorists were unaware of the pricing structure of new cars.
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There is an enormous difference between the Vauxhall Corsa Electric
| STELLANTISShe said more needs to be done to help educate drivers on what goes into the list price of a car, which would make it "better for every buyer".
The reasons behind this can be due to negotiations, which can often be seen as daunting when heading into a car dealership for the first time.
Information is also a key issue for drivers, as they could be unaware of the questions to ask, what vehicle could be suitable for their needs and whether they should invest in an electric or a hybrid.
Insider Car Deals argues that there should be more oversight into the competitive transaction price of a new car, like there has been for discretionary commission arrangements.
The car finance mis-selling scandal has impacted millions of drivers
| GETTYBen Kilbey, founder of Bold Voodoo, acknowledged that buying a vehicle is one of the biggest financial decisions someone will make in their life.
Because of this, drivers should be provided with all of the information necessary to help them make an informed purchase, including being able to compare offers.
He said: "Many drivers walk into a showroom without any clear idea what a genuinely good deal looks like.
"Greater transparency would give buyers confidence and help them focus on choosing the right car for their lives - whether that's electric, hybrid or petrol - rather than worrying they might be overpaying."