Motorpoint is a well-known car dealer group in the UK, known for its extensive range of nearly-new vehicles from major brands such as Ford, Volkswagen, BMW, Audi, Mercedes-Benz, Kia, Hyundai, Nissan, Toyota, Peugeot, and Vauxhall. With over 20 sites across the country, Motorpoint offers consumers a wide selection of car finance options including PCP (Personal Contract Purchase), HP (Hire Purchase), and Personal Loan agreements.
Who is Motorpoint?
Motorpoint operates as an independent car supermarket with locations spread throughout the UK, making it accessible to a large number of customers. The company stocks nearly-new cars from leading manufacturers, ensuring that buyers have plenty of choices when it comes to finding their perfect vehicle. By focusing on high-quality pre-owned and demonstrator models, Motorpoint aims to provide affordable yet reliable vehicles for all budgets.
How Motorpoint Finance Agreements Work
When you purchase a car through Motorpoint using one of its finance options like PCP or HP, the dealer arranges your finance agreement with a lender. Common lenders used by Motorpoint include
Black Horse,
Close Brothers,
MotoNovo, and
Santander Consumer Finance. The lender provides the financing based on the terms agreed upon between you and Motorpoint. In return for arranging these agreements, Motorpoint receives a commission from the lender, known as a
discretionary commission arrangement (DCA).
It's important to understand that while Motorpoint acts as your dealer and helps set up your finance agreement, they are not the actual lender. Your complaint regarding any issues with your car finance should be directed at the lender who provided the financing, not Motorpoint.
The FCA Investigation into Discretionary Commission Arrangements
The Financial Conduct Authority (FCA) is investigating discretionary commission arrangements in the car finance industry. Between 6 April 2007 and 1 November 2024, it's estimated that there were approximately 14 million car finance agreements with a total value of £8.2 billion (FCA estimate). The investigation aims to uncover whether customers were adequately informed about these commission arrangements and if they received fair treatment in the process.
How to Check If Your Motorpoint Finance Agreement Is Affected
To determine if your Motorpoint finance agreement is part of the FCA's investigation, you should review the paperwork associated with your car purchase. Look for details such as the name of the lender providing the finance, the interest rate applied to your loan, and the dates of your finance agreement. If any discrepancies or inconsistencies are found in these documents, it may indicate that your agreement is affected by the investigation.
If you believe your Motorpoint finance agreement has been mis-sold due to a discretionary
commission arrangement, you should first contact the lender directly to file a complaint. This process is entirely free of charge and does not require any involvement from a
claims management company. The lender will need information such as your name, address, the vehicle details, and specifics about the finance agreement in question.
Once your complaint has been submitted, it is advisable to follow up regularly with the lender for updates on its progress. If you do not receive a satisfactory response within 8 weeks, or if you are unsatisfied with the outcome of your initial complaint, you can escalate the matter to the Financial Ombudsman Service (FOS) for further review.
You do not need a claims management company to handle your complaint; you can resolve any issues directly with your lender and seek assistance from FOS if necessary.
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