The BMW 1 Series was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period, which spanned from 6 April 2007 to 1 November 2024. This investigation uncovered widespread mis-selling of motor finance products across the UK automotive industry.
How the BMW 1 Series was Typically Financed
BMW 1 Series models were frequently financed through PCP and HP agreements, with typical financing amounts ranging from £15,000 to £30,000. These agreements typically lasted for a period of 36 to 48 months. Common lenders providing finance for BMW vehicles included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Under PCP agreements, the contract often includes a balloon payment at the end of the term, which is due if you choose to keep the vehicle or use it as part of another agreement. This balloon payment can represent a significant financial commitment and is an important consideration for BMW 1 Series owners who entered into these agreements during the investigation period.
The FCA Motor Finance Investigation
The FCA's investigation uncovered that many lenders had been operating
discretionary commission arrangements, which allowed them to pay sales commissions to dealers based on the terms of finance agreements. This practice led to overcharging and mis-selling across millions of motor finance agreements in the UK. According to the FCA, 12.1 million eligible agreements (FCA, March 2026) by this issue (FCA estimate), with a total estimated loss amounting to £7.5 billion (FCA, March 2026). On average, each customer lost around £829 (FCA estimate) due to these unfair practices.
check the dates of your finance agreement to ensure it falls within the FCA investigation period from 6 April 2007 to 1 November 2024. If you find any discrepancies or suspect mis-selling, contact your lender directly for clarification and further action.
You do not need a
claims management company to complain about potential motor finance mis-selling. You can approach the lenders mentioned above-Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance-and file your complaint directly without any cost.
When you contact these lenders, provide them with detailed information regarding your concerns, including evidence from your finance agreement and purchase documents. The lender is required by law to investigate and respond to your complaint within a reasonable timeframe. If you are unsatisfied with their response, you can escalate the issue to the
Financial Ombudsman Service (
FOS) for further review.
Sources and References
- FCA Investigation Period: 6 April 2007 to 1 November 2024
- Number of Agreements Affected: 12.1 million eligible agreements (FCA, March 2026)
- Total Loss Amount: £7.5 billion (FCA, March 2026)
- FCA-estimated scheme average per eligible agreement: £829 (FCA estimate)
Based on 72,598 MOT tests conducted in 2024 (source: DVSA anonymised test data), the BMW 1 Series has a pass rate of 84.5%. This is above the national average of 79.6%, meaning the 1 Series performs well in MOT testing.
The 1 Series pass rate is in line with the overall BMW average of 84.8%. The average mileage at MOT for this model is 72,869 miles.
- MOT pass rate: 84.5%
- MOT failure rate: 15.5%
- Tests analysed: 72,598 (2024 DVSA data)
- Average mileage at test: 72,869 miles
- BMW average pass rate: 84.8%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.