You do not need to use a Claims Management Company. You can make the claim directly to the lender and if they reject your complaint you can take it to the Financial Ombudsman Service free of charge, but you must do this within 6 months of the lenders Final Decision Letter.

Why we spend more than we want to when buying a car on credit

There are several reasons why people may end up spending more than they initially intended when buying a car on credit. Some of these reasons include:

1. Lack of knowledge about financing options: Many people may not fully understand the different financing options available to them, such as loans, leases, or financing through the dealership. As a result, they may not realize that there are more affordable options available and end up paying more for their car than necessary.

2. Emotional attachment to the car: People may feel a strong emotional attachment to a particular car, leading them to overlook the financial implications of their purchase. They may rationalize the higher cost by telling themselves that they will be happy with the car in the long run.

3. Pressure from salespeople:  Car salespeople are trained to be persuasive and may use various tactics to encourage customers to purchase a more expensive car or add on additional features. This pressure can be especially difficult to resist if the customer is already emotionally invested in the car.

4. Misconceptions about credit: Some people may believe that buying a more expensive car will improve their credit score or that they need to finance the entire cost of the car in order to build credit. In reality, however, making larger monthly payments may not necessarily lead to a better credit score, and it is possible to build credit by making smaller, more affordable payments on a less expensive car.

5. Impulsive buying behavior: Some people may simply act on impulse when making a major purchase, such as a car, and may not fully consider the financial implications of their decision.

Overall, it is important for people to do their research and carefully consider their options when buying a car on credit. This may involve seeking the advice of a financial advisor or doing some comparison shopping to find the best financing option. By being informed and making an informed decision, it is possible to avoid overspending and save money in the long run.

References:

• "The Psychology of Car Buying" 
• "5 Reasons Why People Spend More Money Than They Intend To"