Are you an Audi owner who financed your car through PCP or HP? If so, it's important to understand that during the FCA motor finance mis-selling investigation period from 6 April 2007 to 1 November 2024, many Audi cars were sold using these financing methods. The Financial Conduct Authority (FCA) identified significant issues with
discretionary commission arrangements used by lenders in this industry practice.
How Audi Cars Were Financed
Audi cars have often been financed through various lending institutions, including
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These lenders commonly offered
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements to customers looking to finance their Audi vehicles.
Typical PCP terms for an Audi might include a deposit of around 10% of the car's value, with monthly payments spread over three years. At the end of this term, you would either return the vehicle or pay a final balloon payment to own it outright. Hire Purchase agreements generally require higher upfront deposits and lower monthly payments compared to PCP, but they allow customers to own their Audi at the end of the agreement.
The FCA Motor Finance Investigation
During its investigation into motor finance practices from 6 April 2007 to 1 November 2024, the Financial Conduct Authority (FCA) found that many lenders were using discretionary commission arrangements. This practice allowed dealers to earn additional payments beyond their usual commissions when customers opted for certain types of finance agreements.
The FCA estimated that these arrangements affected 12.1 million eligible agreements (FCA, March 2026) across the UK motor industry during this period, representing a total value of £7.5 billion (FCA estimate). On average, each affected agreement could have resulted in overpayments of approximately £829 (FCA estimate).
How to Check Your Agreement If it was issued between 6 April 2007 and 1 November 2024 and involved a PCP or HP agreement with one of the common lenders (Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, Santander Consumer Finance), there is a possibility that you were affected by these discretionary commission arrangements.
If you suspect your Audi finance agreement was affected by the FCA investigation into discretionary commissions, it's important to know that you can complain directly to your lender without needing to involve any
claims management company. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all have dedicated teams to handle these types of complaints.
When initiating a complaint, provide detailed information about the dates of your finance agreement, any unusual commissions or fees you encountered, and how this may have impacted you financially. You do not need a claims management company; reaching out directly to your lender is often the most straightforward way to resolve these issues.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance Discretionary Commission Arrangements." FCA estimate.
- Financial Ombudsman Service (FOS). "Complaints Handling Procedures."
- Office for National Statistics (ONS) Census 2021.
FCA Compensation: FCA Scheme Figures
The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.
Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.
Across 1,704,453 MOT tests in 2024, Audi vehicles have an overall pass rate of 83.9%. This is above the national average of 79.6%. DVSA data covers 317 Audi models with sufficient test volume.
- Overall pass rate: 83.9%
- Total MOT tests (2024): 1,704,453
- Models with data: 317
- National average: 79.6%
Best Audi models for MOT pass rate
- Audi A6 Sport 50 Tfsi E Quattro S-A: 97.4% pass rate (759 tests)
- Audi Q3 Sport 35 Tfsi Mhev S-A: 94.8% pass rate (1,562 tests)
- Audi Q3 S Line 35 Tfsi Mhev S-A: 94.6% pass rate (4,911 tests)
- Audi A1 S Line Competition Tfsi S-A: 94.6% pass rate (551 tests)
- Audi Q3 S Line 40 Tdi Quattro S-A: 94.5% pass rate (543 tests)
Audi models with lowest MOT pass rate
- Audi A4: 80.1% pass rate (238,269 tests)
- Audi Allroad: 79.6% pass rate (1,635 tests)
- Audi Cabriolet: 75.9% pass rate (1,010 tests)
- Audi 80: 75.6% pass rate (810 tests)
- Audi A2: 70.3% pass rate (6,459 tests)
Audi MOT Reliability Trend (2022-2024)
Audi pass rates have remained stable: 84.0% in 2022, 83.6% in 2023, and 83.9% in 2024.
- 2022: 84.0% pass rate (1,828,848 tests)
- 2023: 83.6% pass rate (1,891,368 tests)
- 2024: 83.9% pass rate (1,704,453 tests)
Based on 5,424,669 MOT tests across three years (DVSA open data).
Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.