The BMW i7, a luxury electric vehicle from BMW, was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period covered by the Financial Conduct Authority's (FCA) investigation into motor finance mis-selling, which spans from 6 April 2007 to 1 November 2024. This investigation uncovered significant issues related to discretionary commission arrangements between lenders and car dealers, affecting millions of consumers.
How the BMW i7 was Typically Financed
During the period under review, the BMW i7 was typically financed through Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements with finance amounts ranging from £15,000 to £30,000. PCP terms often lasted between 36 and 48 months, making it a popular choice for those looking to manage their monthly payments while retaining the option to purchase the car at the end of the term or return it.
Common finance lenders providing motor finance for BMW vehicles include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These lenders often included a balloon payment in PCP agreements, which represented the estimated value of the vehicle at the end of the agreement.
The FCA Motor Finance Investigation
The FCA's investigation into motor finance mis-selling revealed that car dealers were incentivised through discretionary commission arrangements to push customers towards more expensive financing options like Personal Contract Purchase (PCP) rather than cheaper alternatives such as Hire Purchase (HP). These arrangements led to an estimated 12.1 million eligible agreements (FCA, March 2026) being affected across the UK, resulting in total overcharges of £7.5 billion (FCA, March 2026) and an average loss per consumer of £829 (FCA estimate).
The investigation highlighted that car dealers received additional payments from lenders for every finance agreement they facilitated, encouraging them to sell higher-cost products. This practice often led consumers into agreements that were not in their best interests, with many ending up paying more than necessary for their BMW i7.
How to Check Your Agreement Look for evidence of discretionary commissions or any mention of a DCA (Discretionary Commission Arrangement) in the terms and conditions. check if the agreement was signed between 6 April 2007 and 1 November 2024, as these are the dates covered by the investigation.
If you find evidence suggesting that your finance agreement might be affected, you should take further steps to assess whether you have grounds for a complaint. This process can help you determine if you were overcharged or misled into a less favourable financing option than necessary.
Complaining directly to the lender that provided your BMW i7 finance agreement is straightforward and does not require hiring a claims management company. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all have dedicated teams to handle customer complaints.
When making a complaint, be sure to provide detailed information about your finance agreement and any evidence that suggests you may have been affected by the discretionary commission arrangements. You can find contact details for these lenders on their respective websites or through the Motor Finance Association (MFA).
Remember, you do not need a claims management company to handle your complaint; you can manage this process directly with your lender at no cost.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance: Discretionary Commission Arrangements." 2024.
- Financial Ombudsman Service (FOS). "Guidance for Motor Finance Complaints." 2024.