The Fiat 500L 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 investigation uncovered significant issues with
discretionary commission arrangements that affected millions of car buyers across the UK.
How the Fiat 500L was Typically Financed
The Fiat 500L is a compact MPV known for its spacious interior and versatile design, making it a popular choice among families. During the period under investigation by the FCA, many consumers opted to finance their new Fiat 500L through PCP or HP agreements offered by major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Typical PCP terms for a Fiat 500L ranged from £15,000 to £30,000 over a period of 36-48 months. These agreements often included a balloon payment at the end of the term, which is a large final payment that must be made if the customer wishes to own the vehicle outright.
Hire Purchase (HP) agreements for the Fiat 500L were also common and generally provided lower monthly payments compared to PCP, with ownership transferring to the buyer once all instalments have been paid. Both financing methods allowed buyers to drive a new Fiat 500L while spreading out the cost over several years.
The FCA Motor Finance Investigation
The FCA's investigation into discretionary commission arrangements revealed that many car dealerships and finance providers were engaging in practices that could be detrimental to consumers' financial health. Discretionary commissions, which are bonuses paid by lenders for securing specific types of financing deals, often incentivised sales staff to push customers towards more expensive financing options with higher interest rates and fees.
The FCA estimated that 12.1 million eligible agreements (FCA, March 2026) were affected across the UK from April 2007 to November 2024. The total value of these mis-sold finance deals was around £7.5 billion (FCA, March 2026) (FCA, March 2026). These figures highlight the widespread nature and significant financial impact of this issue.
- Review Your Agreement: Look through the documentation provided at the time of purchase. If you see phrases like "Discretionary Commission" or "DCA," it could indicate that the deal was influenced by these practices.
- Relevant Dates: Ensure your agreement falls within the critical period (6 April 2007 to 1 November 2024) for eligibility under the FCA investigation.
- Understanding DCA: A key indicator is whether the finance agreement included a discretionary commission arrangement, often abbreviated as "DCA." This was a common practice that could have led to inflated costs and hidden fees.
How to [Complain Directly](https://mlj.org.uk/guides/how-to-complain-to-your-lender) to Your Lender for Free
If you believe your Fiat 500L finance agreement may have been affected by these issues, it is important to know that you can complain directly to your lender without incurring any additional costs. 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 complaints related to mis-selling.
When lodging a complaint, be sure to provide detailed information about the agreement in question, including dates of purchase, finance terms, and any relevant documents. You do not need to hire a
claims management company or solicitor; your lender is required by law to address your concerns fairly and transparently.
Sources and References
- Financial Conduct Authority (FCA)
- Office for National Statistics Census 2021
- Motor Finance Association Industry Reports
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.