The Honda e, an electric city car introduced to the UK market in 2019, 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 widespread mis-selling practices across various car manufacturers and their dealerships, with many consumers unknowingly being overcharged for their finance agreements.
How the Honda e was Typically Financed
The Honda e is typically financed through Personal Contract Purchase (PCP) or Hire Purchase (HP) arrangements offered by major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These loans usually cover a finance amount between £15,000 to £30,000 over 36 to 48 months.
For PCP agreements specifically, customers often opt for balloon payments at the end of the contract, which are typically higher than the monthly instalments and can be challenging to meet if the car’s residual value has decreased. This structure is designed to provide lower monthly payments but comes with a risk that many consumers may not understand fully.
The FCA Motor Finance Investigation
The FCA investigation into motor finance agreements revealed that
discretionary commission arrangements (DCAs) were widely used during the period from 6 April 2007 to 1 November 2024. These practices involved lenders paying commissions to dealers based on the type of finance agreement, such as higher rates for PCP versus HP. As a result, many consumers unknowingly overpaid by an average of £829 per agreement (FCA estimate). In total, 12.1 million eligible agreements (FCA, March 2026) across the UK market, involving payments of around £7.5 billion (FCA, March 2026).
How to Check Your Agreement Look for mentions of "Discretionary Commission Arrangements" or simply “DCA.” The relevant dates to consider are from 6 April 2007 to 1 November 2024, as this is when the FCA’s investigation period was active.
If your finance agreement falls within these parameters and includes DCA terms, the FCA scheme covers eligible agreements. check if your contract indicates any commission-based incentives that could have influenced the type of finance product offered to you.
Many consumers affected by motor finance mis-selling are unsure how to proceed without involving expensive claims management companies or solicitors. However, you can complain directly to your lender at no cost and handle the process yourself. Common lenders that financed Honda e models include:
- Black Horse
- Barclays Partner Finance
- Close Brothers Motor Finance
- MotoNovo Finance
- Santander Consumer Finance
When contacting these lenders, clearly explain your concerns about potential mis-selling based on the FCA investigation findings. Provide them with evidence from your finance agreement and relevant dates to support your claim.
You do not need a claims management company; handling complaints directly is efficient and straightforward. If you are unsatisfied with their response, you can escalate the issue to the Financial Ombudsman Service (FOS) for free mediation.
Sources and References
- FCA estimate figures: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion (FCA, March 2026) total, £829 average per eligible agreement refund.
- Relevant dates from FCA investigation period: 6 April 2007 to 1 November 2024.
- Lenders commonly associated with Honda e finance: Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, Santander Consumer Finance.