The Citroen C3 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. This vehicle model, known for its compact size and versatility, was often marketed with financing options that may have been mis-sold due to
discretionary commission arrangements between dealerships and lenders.
How the Citroen C3 was Typically Financed
The Citroen C3 is a popular choice among car buyers seeking affordability and practicality. During the period in question, it was commonly financed through PCP agreements ranging from £15,000 to £30,000 over terms of 36 to 48 months. Common lenders who provided finance for Citroen C3 models include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
PCP agreements typically involve a deposit payment followed by monthly instalments with a final "balloon" payment due at the end of the contract. This balloon payment is often higher than what the car's residual value might be if sold outright, making it challenging for some borrowers to complete their agreement without incurring additional costs or entering into another finance deal.
The FCA Motor Finance Investigation
The FCA launched an investigation into discretionary commission arrangements used by lenders and dealerships from 6 April 2007 through 1 November 2024. These arrangements allowed dealers to receive bonuses based on the type of finance agreement sold, potentially incentivising them to recommend certain products over others that might be more suitable for the customer.
According to the FCA's investigation, 12.1 million eligible agreements (FCA, March 2026) were affected by these practices, resulting in an estimated £7.5 billion (FCA, March 2026) total loss to consumers (FCA estimate). On average, each consumer lost approximately £829 (FCA estimate).
How to Check Your Agreement Key indicators include:
- High Interest Rates: Compare your interest rate with those available at the time from other lenders.
- Disproportionate Balloon Payment: If your final payment is significantly higher than what similar models would command in value on the used car market, it could indicate a problem.
- Complex Terms and Conditions: Mis-sold agreements often have confusing or unclear terms that are difficult to understand.
look for specific phrases in your agreement such as "Discretionary Contribution Arrangement" (DCA), which was common during this period. The agreement should also clearly state the dates when it was entered into; if these fall within 6 April 2007 and 1 November 2024, there is a higher likelihood that your finance deal may have been affected.
If you suspect that your Citroen C3 finance agreement was mis-sold due to discretionary commission arrangements, you can file a complaint directly with the lender at no cost. Common lenders for Citroen C3 include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When contacting your lender, provide them with all relevant documentation including the finance agreement itself, any correspondence regarding payments or defaults, and evidence of high costs or terms that were difficult to understand. Be clear about why you believe the agreement was mis-sold and request a full investigation into your complaint.
You do not need a
claims management company; the process can be handled directly with your lender for free. Many lenders have dedicated teams to handle such complaints, making it easier than ever to seek redress without incurring additional fees or costs.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance Investigation Report." 2024.
- Office for National Statistics (ONS) Census. 2021.
- Motor Finance Association (MFA), Annual Reports, Various Years.
Based on 197,269 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Citroen C3 has a pass rate of 75.5%. This is below the national average of 79.6%, meaning the C3 has a higher-than-average failure rate in MOT testing.
The C3 pass rate is in line with the overall Citroen average of 75.3%. The average mileage at MOT for this model is 67,270 miles.
- MOT pass rate: 75.5%
- MOT failure rate: 24.5%
- Tests analysed: 197,269 (2024 DVSA data)
- Average mileage at test: 67,270 miles
- Citroen average pass rate: 75.3%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.