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Honda Finance Mis-Selling — Yes, It Is Affected [2026]

Last updated: 26 February 2026

Honda cars have been popular choices for consumers seeking reliable and efficient vehicles. During the period from 6 April 2007 to 1 November 2024, many Honda models were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements. These financing options allowed buyers to manage their budgets by spreading payments over time while retaining ownership or having the option to purchase the car at the end of the term. ## How Honda Cars Were Financed Honda cars, like many other vehicle brands, were often financed through several well-known lenders including Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These finance agreements typically involved monthly payments for a set period, such as 36 or 48 months, with optional end-of-term options like returning the car or purchasing it outright. The terms of PCP and HP agreements for Honda cars were designed to provide flexibility and affordability for consumers looking to acquire their vehicles through financing. However, these arrangements also came under scrutiny due to potential mis-selling practices by finance providers during this period. ## The FCA Motor Finance Investigation In response to growing concerns about the fairness and transparency of motor finance products offered between 6 April 2007 and 1 November 2024, the Financial Conduct Authority (FCA) launched a full investigation. One key aspect of the inquiry focused on discretionary commission arrangements that some lenders had with car dealerships. The FCA found evidence suggesting that these arrangements may have incentivised sales staff to push customers towards more expensive finance deals rather than more suitable or affordable alternatives. As a result, millions of consumers might have been affected by this practice. The investigation uncovered that 12.1 million eligible agreements (FCA, March 2026) potentially impacted (FCA estimate), with an estimated total value of £7.5 billion across these contracts (FCA estimate). On average, each affected agreement could be overcharged by around £829 (FCA estimate). ## How to Check Your Agreement If your agreement began between 6 April 2007 and 1 November 2024, it could be part of the affected period. consider reviewing any documentation related to your finance deal, such as initial application forms or agreements signed with lenders like Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, or Santander Consumer Finance. These documents may offer clues about whether discretionary commissions played a role in the arrangement of your financing. ## How to Complain Directly to Your Lender for Free If you suspect that your Honda finance agreement was mis-sold due to discretionary commission practices during the specified period, it is important to know that you can take action without involving any claims management companies. You have the right to contact your lender directly and request a review of your case. Common lenders for Honda cars include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. Each of these providers has processes in place to handle customer complaints related to potential mis-selling issues. By reaching out to them via their official complaint channels, you can initiate a review process that is typically free of charge. You do not need a claims management company to assist with this process; many lenders offer dedicated teams to address such inquiries efficiently and transparently. Make sure to gather all relevant documentation and provide detailed information about your concerns when initiating the complaint. ## Sources and References - Financial Conduct Authority (FCA). "Motor Finance: Commission Arrangements." FCA, 2024. - Office for National Statistics (ONS) Census 2021.

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.

Honda MOT Pass Rate — 2024 Data

Across 1,012,997 MOT tests in 2024, Honda vehicles have an overall pass rate of 82.7%. This is above the national average of 79.6%. DVSA data covers 463 Honda models with sufficient test volume.

Overall pass rate: 82.7%
Total MOT tests (2024): 1,012,997
Models with data: 463
National average: 79.6%

Best Honda models for MOT pass rate

Honda Z 125 Ma-K: 97.8% pass rate (856 tests)
Honda Jazz Crosstar Ex I-Mmd Cvt: 97.0% pass rate (5,356 tests)
Honda Crf 250 La-K: 96.8% pass rate (506 tests)
Honda Civic Sport Vtec Cvt: 96.6% pass rate (555 tests)
Honda C 125 A-K: 96.4% pass rate (502 tests)

Honda models with lowest MOT pass rate

Honda Cbr125R: 76.2% pass rate (538 tests)
Honda Prelude: 74.2% pass rate (999 tests)
Honda Accord: 73.5% pass rate (28,072 tests)
Honda Fr-V: 70.0% pass rate (7,633 tests)
Honda Stream: 69.4% pass rate (784 tests)

Honda MOT Reliability Trend (2022-2024)

Honda pass rates have remained stable: 82.9% in 2022, 82.6% in 2023, and 82.7% in 2024.

2022: 82.9% pass rate (1,289,570 tests)
2023: 82.6% pass rate (1,277,216 tests)
2024: 82.7% pass rate (1,012,997 tests)

Based on 3,579,783 MOT tests across three years (DVSA open data).

Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.

Frequently Asked Questions

I purchased a Honda car through motor finance in the UK between April 2007 and November 2024 and suspect it was mis-sold to me. What should I do?

If you believe your Honda vehicle finance agreement was mis-sold, start by reviewing the terms of your contract and assessing whether there were any breaches in conduct or unfair practices. You can complain directly to your lender for free and request a review of your case.

What are some common issues related to motor finance agreements with Honda vehicles sold between April 2007 and November 2024?

Common issues include high-pressure sales tactics, failure to disclose the true cost of financing, inadequate assessment of affordability, and inappropriate cross-selling. These practices can lead to financial difficulties for consumers who may have been pushed into agreements they could not afford.

How many people in the UK might be affected by motor finance mis-selling involving Honda vehicles sold between April 2007 and November 2024?

Based on the Financial Conduct Authority (FCA) estimates, 12.1 million eligible agreements (FCA, March 2026) potentially mis-sold during this period. Of these, a significant number could be related to various car manufacturers including Honda.

Are there any specific red flags I should look out for when reviewing my motor finance agreement with a Honda vehicle?

Red flags include excessive interest rates compared to market standards, aggressive sales techniques that push you into quick decisions, and agreements that do not match your original financial circumstances or needs. It's also important to check if the terms of financing were clearly explained during the sale.

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