The Fiat 500e, a compact electric vehicle known for its stylish design and efficient performance, was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period from 6 April 2007 to 1 November 2024. This investigation uncovered significant issues related to
discretionary commission arrangements in motor finance, affecting millions of agreements.
How the Fiat 500e was Typically Financed
The Fiat 500e was often financed through Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, with typical finance amounts ranging from £15,000 to £30,000. Common lenders for the Fiat 500e included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
PCP agreements typically had terms of 36 to 48 months, with a final balloon payment required at the end of the contract if the option to purchase was exercised. Balloon payments were often set at a level that could be challenging for some customers to afford, especially given the potential mis-selling practices identified by the FCA.
The FCA Motor Finance Investigation
The FCA's investigation into motor finance agreements revealed significant issues with discretionary commission arrangements between car dealers and lenders. These practices involved financial incentives given to dealers based on the size of each agreement, potentially leading to aggressive sales tactics that prioritised higher commissions over customer needs and understanding. As a result, an estimated 12.1 million eligible agreements (FCA, March 2026) by these practices during the investigation period (FCA estimate), with a total amount of £7.5 billion (FCA, March 2026) involved (FCA estimate). The average mis-sold agreement was estimated at around £829 (FCA estimate).
How to Check Your Agreement Discretionary commission agreements were often marked with terms such as "DCA" or similar phrases indicating that discretionary commissions played a role in the financing arrangement. review the dates of your agreement; if it falls within the investigation period (6 April 2007 to 1 November 2024), there is a higher likelihood that the practices outlined by the FCA may apply.
If you suspect that your Fiat 500e finance agreement was mis-sold, you can complain directly to your lender at no cost. Common lenders for the Fiat 500e include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These lenders are required by law to address any complaints fairly and efficiently.
You do not need a
claims management company to handle your complaint; you can contact the lender directly through their customer service or dedicated complaints department. Providing them with details about your concerns and referencing the FCA's findings on discretionary commission arrangements may help expedite the process of resolving your issue. You can also seek further assistance from the
Financial Ombudsman Service (
FOS) if you are unsatisfied with the lender’s response.
Sources and References
- FCA estimate figures provided by the Financial Conduct Authority.
- Additional information based on FCA investigations into motor finance practices during the specified period.
- General guidance from the Financial Ombudsman Service regarding consumer complaints.
Based on 293,727 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Fiat 500 has a pass rate of 76.8%. This is close to the national average of 79.6%, meaning the 500 performs about average in MOT testing.
The 500 pass rate is in line with the overall Fiat average of 77.2%. The average mileage at MOT for this model is 56,611 miles.
- MOT pass rate: 76.8%
- MOT failure rate: 23.2%
- Tests analysed: 293,727 (2024 DVSA data)
- Average mileage at test: 56,611 miles
- Fiat average pass rate: 77.2%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.