Millions of UK motorists and businesses are being encouraged to register for a share of almost £56m car compensation over inflated charges linked to the transportation of new vehicles.

The Competition Appeal Tribunal has approved a plan to distribute £55.87 million to eligible consumers and businesses that bought or leased certain new cars and vans in the UK [1].

The new car compensation UK follows years of legal action connected to a cartel involving international shipping companies responsible for transporting new vehicles.

Around 17.8 million vehicles are estimated to have been affected, potentially making the settlement relevant to a significant number of people who bought or leased a new vehicle during the period covered by the claim.

Who could qualify for car delivery compensation?

The compensation relates to qualifying new cars and vans bought or leased in the UK between 18 October 2006 and 6 September 2015.

Vehicles from 37 manufacturers are covered by the settlement.

They include major brands such as Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroën, Renault, Honda, Hyundai and Kia.

The scheme is not limited to private motorists. Businesses that acquired vehicles for their own use may also qualify. This could include rental companies, delivery businesses, construction firms, maintenance companies and fleet operators.

Public sector organisations that bought or leased qualifying vehicles during the relevant period may also be affected.

Eligibility depends on the vehicle and circumstances, so having bought a new car during the period does not necessarily guarantee a payment.

Why are motorists receiving compensation?

The case stems from anti-competitive behaviour in the international shipping industry.

In 2018, the European Commission fined five maritime car carriers a combined €395 million after finding they had participated in a vehicle shipping cartel involving the transport of new cars, trucks and other large vehicles [2].

The companies involved were MOL, K Line, NYK, WWL/EUKOR and CSAV.

The European Commission found that the companies coordinated prices, allocated customers and exchanged commercially sensitive information rather than competing normally for certain vehicle shipping contracts.

A subsequent UK collective legal action sought compensation on behalf of consumers and businesses affected by higher vehicle prices resulting from the conduct.

Former Which? consumer specialist Mark McLaren acted as the class representative in the proceedings.

After several settlements with the shipping companies, the Competition Appeal Tribunal has approved the arrangements allowing money to be distributed to eligible members of the class.

How much compensation could motorists receive?

Payments for individual consumers are expected to be relatively modest.

Compensation starts at £25 for the first qualifying vehicle.

People with several eligible vehicles can receive an additional £5 for vehicles two to six. Further qualifying vehicles will attract payments of at least £2.50 each.

The amount therefore depends partly on how many eligible vehicles a consumer or business had during the relevant period.

Although the total available for distribution is £55.87 million, this does not mean that the money will be divided equally between everyone who registers.

The settlement follows a collective claim originally valued considerably higher. However, the approved settlement brings the long-running litigation to an end and provides a mechanism through which eligible consumers and businesses can receive compensation.

How can drivers register?

People who think they may be eligible can register through the official Car Delivery Charges claim website.

Those who have already registered are expected to be contacted when the distribution process opens and directed to the online claim form.

Payments are expected to begin later in 2026.

According to information released about the settlement, compensation may be available through different payment methods, including a direct payment into a bank account. Other options are expected to include Nectar points or donating the payment to charity.

Consumers should check the official eligibility information before providing personal details or assuming they are entitled to compensation.

Do you need to have bought the car outright?

No. UK motorists compensation is not restricted to who purchased their vehicle outright.

Qualifying vehicles that were leased may also be covered.

This is important because a substantial proportion of new vehicles in the UK are obtained through leasing and other arrangements rather than straightforward cash purchases.

The key issue is whether the vehicle and the person or organisation using it fall within the class covered by the settlement.

Why did vehicle shipping prices affect car buyers?

Many vehicles sold in Britain are manufactured overseas and have to be transported to the UK before reaching dealerships and customers [3].

Around 80% of new vehicles sold in the UK are imported, according to information released in connection with the claim.

Shipping is therefore one of the costs involved in bringing a new vehicle to market.

The legal action alleged that anti-competitive agreements between shipping companies increased those costs, with some of the additional expense ultimately being reflected in the prices paid by consumers and businesses.

The car buyers compensation covered an estimated 17.8 million vehicles.

Is this the same as car finance compensation?

No. The new car delivery charges compensation case is separate from the FCA's Motor Finance Compensation Scheme [4].

The vehicle delivery compensation case concerns competition law and the cost of transporting new vehicles to the UK.

The FCA car finance scheme, by contrast, concerns certain historic motor finance commission arrangements and whether consumers suffered loss because of practices such as discretionary commission arrangements, excessive commission or undisclosed ties between lenders and brokers.

The two compensation processes have different eligibility rules, dates and legal foundations.

A vehicle could potentially have been acquired using finance during the period covered by the shipping case, but that does not automatically make the owner eligible for either form of compensation.

Likewise, receiving car shipping compensation would not establish that a motorist has a valid car finance complaint.

What happens next?

With the distribution arrangements approved, attention now turns to identifying eligible consumers and businesses and making payments.

McLaren has encouraged motorists to register so they can be contacted when the distribution process begins.

The case has taken around six years to reach this stage and follows settlements with the shipping companies involved in the proceedings.

For motorists who bought or leased a new vehicle between October 2006 and September 2015, the next step is simply to check whether their vehicle is covered and whether they meet the eligibility requirements.

While an individual payment may be relatively small, the scale of the case is substantial. Millions of vehicles were potentially affected, and almost £56 million is now available for distribution to eligible consumers and organisations across the UK.

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References:

1. The Competition Appeal Tribunal has approved a plan to distribute £55.87 million to eligible consumers and businesses that bought or leased certain new cars and vans in the UK - https://uk.finance.yahoo.com/news/uk-consumers-urged-sign-share-113811619.html
2. In 2018, the European Commission fined five maritime car carriers a combined €395 million after finding they had participated in a vehicle shipping cartel involving the transport of new cars, trucks and other large vehicles - https://www.eeas.europa.eu/node/40221_en
3. Many vehicles sold in Britain are manufactured overseas and have to be transported to the UK before reaching dealerships and customers - https://www.gov.uk/government/statistics/uk-import-trade-in-goods-by-country-of-origin-and-country-of-dispatch-2024/uk-import-trade-in-goods-by-country-of-origin-and-country-of-dispatch-2024
4. FCA's Motor Finance Compensation Scheme - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme