The Hyundai i20 has been a popular choice among car buyers, especially those seeking a compact yet feature-rich vehicle. During its production period from 6 April 2007 to 1 November 2024, many owners financed their Hyundai i20 through
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements. However, these financing methods were part of an extensive investigation by the Financial Conduct Authority (FCA), which found that many finance agreements may have been mis-sold due to
discretionary commission arrangements.
How the Hyundai i20 was Typically Financed
Hyundai i20 owners often financed their vehicles through PCP and HP plans offered by major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. The typical finance amount ranged from £15,000 to £30,000 for a term of 36 to 48 months.
In PCP agreements, the borrower makes regular monthly payments over the agreed term while holding a balloon payment at the end of the contract. This final lump sum is often referred to as the Guaranteed Minimum Future Value (GMFV) or simply the "balloon." If the borrower decides not to purchase the car outright or trade it in for another model, they may face significant penalties.
The FCA Motor Finance Investigation
The FCA launched an investigation into motor finance products following widespread concerns about discretionary commission arrangements. These arrangements allowed lenders and dealers to receive additional payments from finance companies when a customer took out a loan to purchase their vehicle. According to the FCA’s findings, 12.1 million eligible agreements (FCA, March 2026) may have been affected by these practices (FCA estimate), with an estimated total value of £7.5 billion (FCA, March 2026) and an FCA-estimated average of £829 per eligible agreement.
The investigation revealed that many customers were not fully informed about the implications of these arrangements, leading to potential mis-selling issues.
How to Check Your Agreement Key indicators include:
- Discretionary Commission Arrangements (DCA): Look for any mention of DCA in your finance agreement or correspondence from your lender.
- Relevant Dates: Ensure that your financing period falls within the specified timeframe.
If you suspect your agreement was mis-sold, it is important to review your contract carefully and consult with your lender directly about potential issues.
You do not need a
claims management company to complain. Common lenders for Hyundai i20 finance agreements include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. Each of these companies has a dedicated customer service team that can assist you with your concerns.
Complaining directly to your lender is straightforward and free. You should provide them with clear details about why you believe there was mis-selling in your finance agreement and request any necessary documentation or explanations.
You can complain directly to your lender for free, and you do not need a claims management company (FCA estimate).
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics (ONS) Census, 2021
Based on 122,160 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Hyundai I20 has a pass rate of 81.0%. This is close to the national average of 79.6%, meaning the I20 performs about average in MOT testing.
The I20 pass rate is in line with the overall Hyundai average of 81.4%. The average mileage at MOT for this model is 61,579 miles.
- MOT pass rate: 81.0%
- MOT failure rate: 19.0%
- Tests analysed: 122,160 (2024 DVSA data)
- Average mileage at test: 61,579 miles
- Hyundai average pass rate: 81.4%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.