The Honda Civic is a popular car model that was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the FCA investigation period from 6 April 2007 to 1 November 2024. This article explores how these financing arrangements were typically structured for the Honda Civic, the outcomes of the FCA motor finance investigation, and what steps affected car owners can take if they suspect their agreement was mis-sold.
How the Honda Civic Was Typically Financed
The Honda Civic is often financed through PCP agreements ranging from £15,000 to £30,000 with terms typically lasting 36 to 48 months. Popular lenders for Honda finance include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. In a typical PCP agreement, the borrower makes regular monthly payments while also agreeing to a final "balloon" payment at the end of the term. This balloon payment is usually the residual value of the vehicle, which allows the borrower to own the car outright if they choose to complete the agreement.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) conducted an extensive investigation into motor finance agreements from 6 April 2007 to 1 November 2024. A significant finding was that many dealerships were using
discretionary commission arrangements, which often resulted in higher interest rates and fees for customers without their knowledge or consent. The FCA estimates that 12.1 million eligible agreements (FCA, March 2026) by such practices (FCA estimate), leading to an FCA-estimated scheme average of £829 per eligible agreement per customer, with a total estimated loss of £7.5 billion (FCA, March 2026).
How to Check Your Agreement Look for evidence of higher-than-average interest rates or unexpected fees.
- Relevant Dates: Ensure that your finance agreement was made between 6 April 2007 and 1 November 2024, as this is the period under investigation.
- Discretionary Commission Arrangements (DCA): Search for any mention of DCA in your paperwork. This term can be a red flag indicating that discretionary commission arrangements may have influenced your finance terms.
If you believe your Honda Civic's finance agreement was mis-sold due to the use of discretionary commission arrangements, it is important to know that you do not need to involve a
claims management company. Instead, you can complain directly to your lender-Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, Santander Consumer Finance, or any other lenders involved-with all relevant evidence and documentation. Lenders are required by law to address complaints promptly and fairly.
Sources and References
- Financial Conduct Authority (FCA). "Estimates for the impact of discretionary commission arrangements on motor finance agreements." 2024.
- Office for National Statistics (ONS) Census 2021.
Based on 273,519 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Honda Civic has a pass rate of 77.7%. This is close to the national average of 79.6%, meaning the Civic performs about average in MOT testing.
The Civic pass rate is slightly below the overall Honda average of 82.7%. The average mileage at MOT for this model is 91,386 miles.
- MOT pass rate: 77.7%
- MOT failure rate: 22.3%
- Tests analysed: 273,519 (2024 DVSA data)
- Average mileage at test: 91,386 miles
- Honda average pass rate: 82.7%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.