Cupra cars have been popular choices for consumers looking for stylish and performance-oriented vehicles. During the period from 6 April 2007 to 1 November 2024, Cupra cars were commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements through various lenders. The Financial Conduct Authority (FCA) has been investigating motor finance arrangements during this time, revealing significant issues related to
discretionary commission payments that may have affected many consumers who financed their Cupra vehicles.
## How Cupra Cars Were Financed
Cupra cars were often sold on PCP and HP finance agreements through major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These financing options allowed customers to make affordable monthly payments while building equity in the vehicle over time. However, the terms of these agreements could vary widely depending on factors like the length of the contract, the mileage allowance, and additional fees such as option-to-purchase (OTP) charges.
## The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance arrangements in the UK during the period from 6 April 2007 to 1 November 2024. One of the key issues identified was the use of discretionary commission payments by lenders and car dealerships. These commissions were paid based on the total amount financed, rather than the interest rate or loan terms, which could have incentivized sales staff to recommend higher-cost finance agreements.
The FCA's investigation revealed that 12.1 million eligible agreements (FCA, March 2026) may have been affected by these discretionary commission arrangements. The estimated total compensation for affected consumers is around £7.5 billion (FCA estimate), with the average amount per consumer being about £829 (FCA estimate).
## How to Check Your Agreement Look for evidence of discretionary commission payments or unusual fees that were not transparently disclosed at the time of financing.
The relevant period to check is from 6 April 2007 to 1 November 2024. If you financed your Cupra vehicle during this timeframe, there is a possibility that your agreement may have been affected by discretionary commission arrangements.
## How to
Complain Directly to Your Lender for Free
If you believe your Cupra finance agreement was impacted by the FCA's findings regarding discretionary commissions, you can complain directly to your lender without needing to use a
claims management company. Common lenders for Cupra cars include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When making a complaint, it is important to provide clear details about the issues you are facing and any relevant documentation from your finance agreement. Your lender should respond promptly and work with you to address any concerns or compensation due.
You do not need a claims management company to handle this process; most lenders have established procedures for handling complaints related to the FCA investigation, which can be accessed directly through their customer service channels.
## Sources and References
- Financial Conduct Authority (FCA)
- Office of National Statistics Census 2021
- Motor Finance Industry Reports
FCA Compensation: FCA Scheme Figures
The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.
Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.
Across 7,446 MOT tests in 2024, Cupra vehicles have an overall pass rate of 91.1%. This is above the national average of 79.6%. DVSA data covers 19 Cupra models with sufficient test volume.
- Overall pass rate: 91.1%
- Total MOT tests (2024): 7,446
- Models with data: 19
- National average: 79.6%
Best Cupra models for MOT pass rate
- Cupra Formentor V1 Tsi S-A: 92.6% pass rate (901 tests)
- Cupra Formentor V2 Tsi: 92.1% pass rate (764 tests)
- Cupra Formentor V1 Phev S-A: 92.0% pass rate (524 tests)
- Cupra Formentor V1 Tsi: 91.3% pass rate (517 tests)
- Cupra Formentor V2 Tsi S-A: 91.3% pass rate (936 tests)
Cupra models with lowest MOT pass rate
- Cupra Formentor V1 Phev S-A: 92.0% pass rate (524 tests)
- Cupra Formentor V1 Tsi: 91.3% pass rate (517 tests)
- Cupra Formentor V2 Tsi S-A: 91.3% pass rate (936 tests)
- Cupra Formentor Vz2 Tsi 4Drive S-A: 90.6% pass rate (662 tests)
- Cupra Formentor V2 Phev S-A: 90.3% pass rate (914 tests)
Cupra MOT Reliability Trend (2022-2024)
Cupra MOT pass rates have declined slightly, from 100.0% in 2022 to 91.1% in 2024 (-8.9 percentage points).
- 2022: 100.0% pass rate (4 tests)
- 2023: 96.8% pass rate (317 tests)
- 2024: 91.1% pass rate (7,446 tests)
Based on 7,767 MOT tests across three years (DVSA open data).
Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.