The BMW 7 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 spans from 6 April 2007 to 1 November 2024. This high-end luxury car was often financed through various lenders who offered significant sums of money for these deals.
How the BMW 7 Series Was Typically Financed
The BMW 7 Series was typically purchased using PCP finance arrangements, with typical loan amounts ranging from £15,000 to £30,000. These agreements often spanned a term of 36 to 48 months, during which the borrower made monthly payments while retaining an option to purchase or return the vehicle at the end of the agreement. Common lenders for BMW vehicles included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Balloon payments were a key component in many PCP agreements. These large final payments covered the residual value of the car, which was determined based on its expected condition and mileage at the end of the finance term. If the borrower chose to return or sell their BMW 7 Series, they would typically need to pay this balloon payment.
The FCA Motor Finance Investigation
The FCA conducted an investigation into motor finance agreements made from 6 April 2007 to 1 November 2024, focusing on
discretionary commission arrangements. These commissions were paid by lenders to dealerships for each finance agreement they facilitated. According to the FCA's findings, 12.1 million eligible agreements (FCA, March 2026) were affected, with a total value of £7.5 billion (FCA, March 2026). The average amount per agreement was estimated at £829 (FCA estimate).
These arrangements raised concerns about potential conflicts of interest and whether dealerships might have prioritised commission-generating deals over customers' best interests. This could mean that some BMW 7 Series owners were sold finance agreements that may not have been in their best financial interest.
How to Check Your Agreement Look for the term "Discretionary Commission Arrangement" (DCA) or similar wording, as this indicates that your lender paid a commission to the dealership based on your finance deal.
consider the dates of your finance agreement. If it was signed between 6 April 2007 and 1 November 2024, there is a possibility it could be affected by the FCA investigation. You should also examine the terms of the agreement to understand any potential conflicts of interest or unfair practices that may have influenced the financing decision.
If you suspect your BMW 7 Series finance agreement was mis-sold, you can complain directly to your lender at no cost. Common lenders for BMW vehicles include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When contacting your lender, provide detailed information about the issues you have with your finance agreement, including any evidence that supports your case. You do not need a
claims management company to handle this process; many lenders have customer service teams dedicated to resolving complaints efficiently.
You can also escalate unresolved complaints to the
Financial Ombudsman Service (
FOS) if necessary. The FOS provides an independent and free service for resolving disputes between consumers and financial organisations.
Sources and References
- Financial Conduct Authority (2024)
- Financial Ombudsman Service (various years)
- BMW UK Official Website (various years)
Based on 3,722 MOT tests conducted in 2024 (source: DVSA anonymised test data), the BMW 7 Series has a pass rate of 89.1%. This is above the national average of 79.6%, meaning the 7 Series performs well in MOT testing.
The 7 Series pass rate is better than the overall BMW average of 84.8%. The average mileage at MOT for this model is 76,459 miles.
- MOT pass rate: 89.1%
- MOT failure rate: 10.9%
- Tests analysed: 3,722 (2024 DVSA data)
- Average mileage at test: 76,459 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.