The BMW 4 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 ran from 6 April 2007 to 1 November 2024. The FCA’s investigation into motor finance practices revealed significant concerns regarding
discretionary commission arrangements that could have negatively impacted consumers who financed their BMW 4 Series through certain lenders.
How the BMW 4 Series was Typically Financed
The BMW 4 Series is a popular car model known for its sleek design and performance, making it an attractive choice among luxury vehicles. During the period of interest, many individuals opted to purchase this vehicle through PCP or HP finance agreements offered by major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
A typical PCP agreement for a BMW 4 Series would involve an initial deposit followed by monthly payments over a term of 36 to 48 months. The financing amount usually ranged from £15,000 to £30,000 depending on the model and options chosen. One notable feature of PCP agreements is the inclusion of a balloon payment at the end of the contract, which represents the remaining value of the vehicle if you choose not to buy it outright.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance practices due to concerns about discretionary commission arrangements. These arrangements involved lenders paying dealerships additional fees based on the terms of individual agreements, which could have influenced salespeople to push more expensive financing options that might not be in the best interest of consumers.
According to the FCA's findings, 12.1 million eligible agreements (FCA, March 2026) by these practices (FCA estimate). The total amount involved was around £7.5 billion (FCA, March 2026) (FCA, March 2026).
How to Check Your Agreement Look specifically for any mention of discretionary commission arrangements or fees paid by the lender to the dealership based on the terms of your contract.
Relevant dates are crucial: if your agreement was signed between 6 April 2007 and 1 November 2024, it may be eligible for review under the FCA's findings. check if your agreement contains a term such as "Discretionary Contribution Arrangement" (DCA), which indicates that discretionary commission practices might have been involved.
If you believe your BMW 4 Series finance agreement was affected by the FCA's findings on discretionary commission arrangements, you can complain directly to your lender without needing a
claims management company. Common lenders providing finance for the BMW 4 Series include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When contacting these lenders, provide detailed information about your agreement, including dates and specific terms that suggest discretionary commission practices were in play. You do not need a claims management company to handle this process; you can make your complaint directly for free. The lender will review your case based on the FCA's guidelines and determine if compensation is warranted.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance: Discretionary Commission Arrangements." 2024.
- Office for National Statistics (ONS) Census, 2021.
Based on 1,172 MOT tests conducted in 2024 (source: DVSA anonymised test data), the BMW 4 Series has a pass rate of 84.8%. This is above the national average of 79.6%, meaning the 4 Series performs well in MOT testing.
The 4 Series pass rate is in line with the overall BMW average of 84.8%. The average mileage at MOT for this model is 83,774 miles.
- MOT pass rate: 84.8%
- MOT failure rate: 15.2%
- Tests analysed: 1,172 (2024 DVSA data)
- Average mileage at test: 83,774 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.