BMW i3 Motor Finance - Owner Information | MLJ.org.uk

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BMW i3 Motor Finance - Owner Information | MLJ.org.uk

Last updated: 27 February 2026

The BMW i3, a pioneering electric vehicle (EV) from BMW that gained popularity in recent years, was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period under investigation by the Financial Conduct Authority (FCA), which spans from 6 April 2007 to 1 November 2024. This period saw significant issues with motor finance mis-selling, particularly in relation to discretionary commission arrangements (DCAs).

How the BMW i3 was Typically Financed

BMW i3s were typically financed through Personal Contract Purchase (PCP) agreements, ranging from £15,000 to £30,000 over a term of 36 to 48 months. This financing model allowed buyers to make monthly payments and potentially hand back the vehicle at the end of the agreement or pay an optional final balloon payment to own it outright. Common finance lenders for BMW i3s during this period included Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These lenders often provided flexible financing options that suited various consumer needs but also came with complex terms and conditions that could be difficult for consumers to understand fully. In PCP agreements, a significant portion of the finance agreement is deferred until the end of the term in the form of a balloon payment or Guaranteed Minimum Future Value (GMFV). This can make it challenging for buyers to predict their total cost over the life of the agreement. If the actual value of the car at the end of the contract is less than expected, buyers may find themselves owing more money than anticipated.

The FCA Motor Finance Investigation

The FCA’s investigation into motor finance mis-selling revealed significant issues with DCAs, which were arrangements that allowed dealers to receive payments from lenders based on the volume and type of agreements they facilitated. This led to a conflict of interest where dealers might have prioritised sales over customer needs. According to the FCA, 12.1 million eligible agreements (FCA, March 2026) by these mis-selling practices (FCA estimate), resulting in an estimated total cost to consumers of £7.5 billion (FCA, March 2026). On average, each consumer lost about £829 as a result of these issues (FCA estimate). The investigation highlighted that many buyers of BMW i3s and other vehicles were sold finance agreements that did not meet their financial needs or understanding. This could have led to higher costs, more restrictive terms, and potential difficulties in meeting monthly payments.

How to Check Your Agreement Relevant dates include any agreements made between 6 April 2007 and 1 November 2024.

If your agreement includes terms related to DCAs, it is advisable to seek further advice from a financial advisor or contact the relevant lender directly. Understanding if you were part of an affected finance agreement can help you take necessary steps towards seeking compensation if applicable.

How to Complain Directly to Your Lender for Free

If you believe your BMW i3’s financing was mis-sold under one of the common lenders mentioned, such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, or Santander Consumer Finance, you can complain directly to them without needing a claims management company. These lenders are required by law to address complaints in a fair and transparent manner. You do not need a claims management company to initiate your complaint. By contacting the lender directly, you can provide evidence of mis-selling practices such as excessive fees or misleading terms. The Financial Ombudsman Service (FOS) is also available to help mediate disputes if initial complaints are not resolved satisfactorily.

Sources and References

FCA estimates on affected agreements and consumer costs: (FCA, 2024)
Common lenders for BMW i3 finance: (BMW Financial Services UK, 2021)

BMW 3 MOT Pass Rate

Based on 141 MOT tests conducted in 2024 (source: DVSA anonymised test data), the BMW 3 has a pass rate of 81.6%. This is close to the national average of 79.6%, meaning the 3 performs about average in MOT testing.

The 3 pass rate is slightly below the overall BMW average of 84.8%. The average mileage at MOT for this model is 100,302 miles.

MOT pass rate: 81.6%
MOT failure rate: 18.4%
Tests analysed: 141 (2024 DVSA data)
Average mileage at test: 100,302 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.

Frequently Asked Questions

How common is mis-selling in BMW i3 motor finance agreements?

Mis-selling in BMW i3 motor finance agreements can occur if a lender fails to assess whether the agreement suits your financial situation or adequately explains the terms and risks involved.

What are some red flags of mis-sold BMW i3 car finance?

Red flags for mis-sold BMW i3 car finance might include high-pressure sales tactics, incomplete explanations about costs or obligations, being approved despite poor credit history without proper assessment.

If I suspect my BMW i3 motor finance agreement was mis-sold, what should I do?

You can complain directly to your lender for free if you suspect your BMW i3 motor finance agreement was mis-sold. You do not need a claims management company.

What are the typical consequences of mis-sold BMW i3 car finance agreements?

Mis-sold BMW i3 car finance agreements can lead to financial difficulties for customers, including high interest rates and penalties that may be unjustified given their circumstances.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.