How do I know if my car dealer received commission?

• You can find out if your car dealer received commission by asking your finance lender for a breakdown of the agreement, or by checking your original paperwork for commission or broker fee disclosures.

• Dealers being paid commission isn't automatically a problem. What matters is whether it was properly disclosed to you and whether you gave informed consent.

• You can ask your lender directly for free, or Claim-Smart can help you find out what was disclosed and whether your agreement is worth investigating.

If you've seen the coverage of car finance commission complaints in the news, you might be wondering whether your own dealer got a cut when you took out your PCP or HP agreement.

It's a good question to ask before you decide whether to make a complaint.

You don't need to guess, and you don't need to be a finance expert to check. There are a few ways to find out, and none of them cost anything to try.

If you'd rather have some help working it out, Claim-Smart can look into your agreement for you.

How do I know if my car dealer received commission?

The most reliable way to find out if your dealer received commission is to contact your finance lender and ask for a full breakdown of the agreement. On this, you should be able to see any commission, fee or financial arrangement tied to your sale.

The lender, not the dealer, holds the actual figures, so they're the best place to start.

You don't need to use a claims management company to do this. You can contact your lender yourself for free and ask them directly.

If you'd rather not manage that yourself, Claim-Smart can request this information for you and explain what the response means.

What paperwork shows whether commission was paid?

Your original finance agreement, Initial Disclosure Document (IDD) or pre-contract information may mention broker fees, payments or commission arrangements.

The IDD is a document your dealer or broker should have given you before you signed the agreement, explaining how the finance was arranged and who was being paid for it.

Not everyone kept a copy, which isn’t necessarily a problem.

Look for wording about "commission", "introducer payments" or "broker fees". If none of that is mentioned anywhere in your paperwork, that might mean it wasn’t disclosed to you.

What if I no longer have my finance paperwork?

You don't need your original paperwork to find out whether commission was paid.

Lenders can often trace agreements using your name, address, date of birth and the rough date you took out the finance.

Old bank statements, credit reports or confirmation emails from the dealership can also help fill in the gaps.

If you've lost your finance documents and aren't sure where to start, Claim-Smart can help you work out what information your lender will need.

Can I just ask the dealer directly?

Yes, you can ask the dealer or salesperson directly, and they should be able to tell you whether commission was involved.

It's still worth checking with your lender as well, since they hold the official record of the agreement and any commission paid, and a written response from them carries more weight if you go on to make a complaint.

Does my dealer receiving commission mean I was mis-sold car finance?

No, not on its own. Dealers being paid commission for arranging car finance was standard for years, and receiving it wasn't against the rules.

The issue is whether that commission was properly explained to you and whether you gave informed consent to it, not whether commission existed at all.

If you want to understand what actually makes an agreement potentially mis-sold, that's worth reading alongside this.

What's the difference between a discretionary commission arrangement and other types of commission?

A discretionary commission arrangement (DCA) let the dealer adjust your interest rate, which increased their own commission. This model was banned from January 2021, so it mainly affects agreements taken out before then.

Other, non-discretionary commission arrangements still exist and are also covered by the FCA's redress scheme, so it's worth asking your lender about both types rather than assuming a DCA is the only thing that matters.

Even if your lender confirms there was no DCA on your agreement, that doesn't rule out another form of commission being relevant.

What if my lender says no commission was paid, or won't tell me?

If your lender says no commission was paid, ask them to confirm what type of commission arrangement, if any, applied and how they reached that conclusion.

If you're not satisfied with their answer, or they don't respond at all, you can take your complaint further rather than leaving it there.

If you'd like help pushing for a clearer answer, get in touch with Claim-Smart and we can take it from here.

So, how do I know if my car dealer received commission?

Contact your finance lender and ask for a breakdown of any commission tied to your agreement, and check your paperwork for mentions of commission, broker fees or an IDD.

You can also ask the dealer directly, though the lender's records are the more reliable source.

Finding out commission was paid doesn't automatically mean you were mis-sold car finance. It depends on whether that commission was properly disclosed and whether you agreed to it.

You can complain directly to your lender for free, or, if you'd like support finding out what was disclosed on your agreement, Claim-Smart can help. Get in touch to find out more.

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