Yes, of course, you can claim on a car that has been traded in, sold or scrapped. For PCP claims UK or car finance refunds eligibility, it is the way the finance agreement was set up in the first place that matters, rather than who currently owns the vehicle. In fact, many legitimate claims are on agreements that could be several years old, as trading the vehicle does not take away your right to a refund if you were mis-sold car finance. Whether you exchanged the car in 2017 or even earlier, you could be entitled to financial redress if your agreement was part of the car finance scandal or involved unfair terms.

Why Trading In Doesn’t Impact Eligibility

You do not have to own the car to file a car finance claim. The potential damage is at the point of sale and at the point when the finance product was mis-sold, not at the point at which the vehicle is sold to someone else. There are currently no time bars in the FCA’s 2025 rules preventing consumers from claiming for older agreements. Many people only discover mis-sold car finance years later, often after reviewing their statements or noticing unusually high charges. This means that even if your car is no longer in your possession, you can still pursue a PCP claim or related compensation resulting from a car finance scandal.

Timeline Context (Late 2025)

By the end of 2025, the FCA is consulting on the best approach for lenders to deal with PCP claims and mis-sold car finance [1]. The consultation period runs from October to 12 December 2025 [2] and lenders are not required to respond to claims until 4 December 2025 [3]. This hold is to stop lenders from issuing final decisions, but all complaints may still be logged.

The FCA's ongoing review of historic finance means the deadline for claims has not yet been reached. Complaints can be made about agreements from 2007 to 2024. Recent guidance on the latest updates on car finance claims in the UK confirms that mis-selling complaints can relate to historical agreements, and the regulator recognises that the impact of practices such as discretionary commission arrangements may only be discovered long after the initial purchase. It also allows the re-opening of old contracts for possible redress, even if you traded the car in some years ago, particularly if it was part of the wider car finance scandal.

Example Scenario

Consider a consumer who traded in their car in 2017 after a four-year PCP agreement. Years later, they discovered that their finance rate had been adjusted to benefit the dealership through hidden commissions, an example of mis-sold car finance. Despite the car being sold, the consumer has been able to file a claim for a car finance refund as the mis-selling took place at the beginning of the agreement. They were assisted in making a complaint by a reputable claims management company, and the case has proven that selling your car doesn’t affect your rights under FCA regulations. However, you are still able to make a complaint yourself and check if you’re eligible to claim for compensation.

Final Word

Selling your car does not stop you from making a complaint about mis-sold car finance. If you believe you were treated unfairly in any of your finance agreements, even if you sold your car years ago, you may be entitled to compensation. Discover what to do next and check your previous agreements to see if they are eligible for reclaim at Reclaim247 now. You can access their quick eligibility checker or learn more about Do I need a solicitor to file a car finance mis-selling complaint?, understand What’s the role of the Financial Ombudsman in car finance redress?, or know How far back can I go with my car finance mis-selling claim? to help ensure your claim is handled effectively.

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References:

1. the FCA is consulting on the best approach for lenders to deal with PCP claims and mis-sold car finance - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. The consultation period runs from October to 12 December 2025 - https://www.fca.org.uk/news/statements/motor-finance-compensation-scheme-consultation-progress-and-timing
3. lenders are not reuiqred to respond to claims until 4 December 2025 - https://www.fca.org.uk/publications/policy-statements/ps24-18-further-temporary-changes-handling-rules-motor-finance-complaints#:~:text=The%20rules%20described%20in%20this,until%20after%204%20December%202025.