The Hyundai IONIQ, a versatile car available in hybrid and electric variants, 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. The FCA uncovered that many finance agreements involving the IONIQ and other vehicles were affected by
discretionary commission arrangements, leading to potential mis-selling issues.
## How the Hyundai IONIQ was Typically Financed
The Hyundai IONIQ was often financed through Personal Contract Purchase (PCP) or Hire Purchase (HP) plans with typical financing amounts ranging from £15,000 to £30,000. PCP agreements for the IONIQ typically lasted 36 to 48 months and were offered by major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
PCP contracts for the Hyundai IONIQ often included a balloon payment at the end of the agreement term. This final payment represents the residual value of the vehicle, which is estimated at the outset based on expected depreciation over the contract period. Balloon payments are not mandatory but can be negotiated as part of the finance package.
## The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance agreements to address concerns about discretionary commission arrangements between lenders and retailers. These commissions were often paid based on sales performance, which could have incentivised dealerships to push certain financing options over others regardless of the customer's best interest.
According to the FCA’s findings, 12.1 million eligible agreements (FCA estimate) across various car models, including the Hyundai IONIQ, were potentially affected. These agreements spanned a total value of £7.5 billion (FCA, March 2026), with an average mis-selling amount estimated at £829 per agreement (FCA estimate). This investigation highlighted significant issues in how motor finance was sold to consumers.
## How to Check Your Agreement Key indicators that your financing may have been affected include:
-
Date Range: Financing agreements issued between 6 April 2007 and 1 November 2024.
-
Discretionary Commission Arrangements (DCA): Look for references to DCA in your finance agreement documentation or any related correspondence.
If you find evidence that these factors apply, it is advisable to contact your lender directly to inquire further about the status of your agreement and whether there are potential compensation claims available.
## How to
Complain Directly to Your Lender for Free
You do not need a
claims management company to pursue a complaint regarding your Hyundai IONIQ finance agreement. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all offer direct channels for customers to lodge complaints.
When contacting your lender, provide clear details of the issues you are facing and any documentation that supports your case. You can also seek guidance from organisations like the
Financial Ombudsman Service (
FOS) if your complaint is not resolved through initial contact with your lender.
You can complain directly to your lender for free without incurring additional fees or charges associated with claims management companies.
## Sources and References
- FCA, 2024
- Financial Conduct Authority, "Discretionary Commission Arrangements (DCAs) in Motor Finance," [link]
- Office for National Statistics, UK Census 2021
Based on 41,967 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Hyundai Ioniq has a pass rate of 90.8%. This is above the national average of 79.6%, meaning the Ioniq performs well in MOT testing.
The Ioniq pass rate is better than the overall Hyundai average of 81.4%. The average mileage at MOT for this model is 57,782 miles.
- MOT pass rate: 90.8%
- MOT failure rate: 9.2%
- Tests analysed: 41,967 (2024 DVSA data)
- Average mileage at test: 57,782 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.