Group 1 Automotive, a UK-wide dealer group that has previously offered Citroen vehicles to consumers, may have sold cars under problematic finance agreements. Many consumers purchased Citroen vehicles through Group 1 Automotive or similar dealer groups on Personal Contract Purchase (PCP) or Hire Purchase (HP) terms during the period from 6 April 2007 to 1 November 2024. While Group 1 Automotive does not currently stock Citroen, this dealer group played a significant role in facilitating car finance deals for consumers who bought vehicles on these terms.
Citroen Finance at Group 1 Automotive
When purchasing a Citroen through Group 1 Automotive or any similar dealership, buyers often opt for PCP or HP finance agreements. These arrangements allow customers to acquire the vehicle with lower initial payments and manageable monthly instalments. However, many of these deals include
discretionary commission arrangements (DCAs), which can result in higher overall costs due to commissions paid by lenders to dealers based on the interest rate applied to the loan.
Finding Your Lender
If you purchased a Citroen through Group 1 Automotive or another dealer group and financed it with PCP or HP, your first step is to identify the lender who provided your finance agreement. This information can typically be found in your finance contract documentation or on your finance provider’s website if they offer an account lookup service. You should note that while Group 1 Automotive facilitated the sale of the vehicle and arranged the finance deal, complaints should be directed to the actual lender named in your finance agreement.
If you suspect that your Citroen purchase through a dealer like Group 1 Automotive involved an unfair discretionary
[commission arrangement](https://mlj.org.uk/glossary/discretionary-commission-arrangement), it is important to
complain directly to your lender. You do not need a
claims management company; you can handle the complaint yourself and at no cost. The FCA estimates that about 14 million car finance agreements were affected during the period from 6 April 2007 to 1 November 2024, with an average claim value of £700 per agreement totalling over £8.2 billion in potential compensation.
You can complain directly to your lender for free and ensure you are not signing up for any additional services or fees by doing so. Remember that contacting the dealer (Group 1 Automotive) will not resolve issues related to the finance agreement, as they were merely intermediaries in setting up the loan.
Sources and references
- FCA estimates of affected car finance agreements: https://www.fca.org.uk/news/announcements/update-on-action-to-support-car-finance-customers
- FCA compensation figures: https://www.fca.org.uk/news/press-releases/fca-proposes-new-rules-for-car-and-motorcycle-finance