The Hyundai Kona Electric 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 electric vehicle, known for its range of up to 305 miles per charge and a starting price point around £28,995, was frequently financed through various lenders who facilitated these agreements. The FCA's investigation found that millions of motor finance agreements were affected by
discretionary commission arrangements (DCAs) during this period.
How the Hyundai Kona Electric Was Typically Financed
The Hyundai Kona Electric was typically financed with Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, ranging from £15,000 to £30,000. Common PCP terms were 36 months or 48 months, providing customers with affordable monthly payments while offering a choice at the end of the agreement to either buy out the car for its residual value, return it, or extend the loan term through part-exchange. Some agreements included balloon payments, which are large final payments made at the end of the finance period.
Common lenders who provided finance for the Hyundai Kona Electric include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These institutions facilitated both PCP and HP contracts, ensuring that customers had multiple options to suit their financial needs and preferences.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance agreements due to concerns over discretionary commission arrangements (DCAs). These were payments made by lenders to dealers for each new car loan or finance agreement they originated. During the period from 6 April 2007 to 1 November 2024, it was found that 12.1 million eligible agreements (FCA, March 2026) by these DCAs (FCA estimate), impacting a total of £7.5 billion (FCA, March 2026) in lending (FCA estimate) with an average loss per consumer of £829 (FCA estimate). This investigation highlighted the potential for dealers to prioritise sales over customer needs, leading to mis-selling practices that may have led consumers into unsuitable finance agreements.
How to Check Your Agreement Look for specific language indicating the presence of a DCA or any additional fees and charges that were not clearly explained at the time of signing. Relevant dates to consider include agreements signed between 6 April 2007 and 1 November 2024.
If your agreement includes terms related to discretionary commissions, balloon payments, or excessive costs without clear justification, it is likely affected by the FCA's investigation findings. You should also check for any correspondence from your lender regarding changes in interest rates or other adjustments made after the initial agreement was signed.
If you suspect that your Hyundai Kona Electric finance agreement may have been mis-sold due to DCAs, you can complain directly to your lender at no cost. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all provide customer service departments specifically designed to handle complaints.
When contacting your lender, gather evidence of any discrepancies or misunderstandings about the terms of your finance agreement. Provide detailed information about how the mis-selling may have affected you financially and emotionally. Remember that you do not need a
claims management company; handling the complaint directly with your lender is often more straightforward and cost-effective.
Sources and References
- Financial Conduct Authority (FCA) estimates on DCAs.
- FCA reports on motor finance investigations.
- ONS Census 2021 for demographic data.
Based on 24,869 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Hyundai Kona has a pass rate of 91.3%. This is above the national average of 79.6%, meaning the Kona performs well in MOT testing.
The Kona pass rate is better than the overall Hyundai average of 81.4%. The average mileage at MOT for this model is 35,816 miles.
- MOT pass rate: 91.3%
- MOT failure rate: 8.7%
- Tests analysed: 24,869 (2024 DVSA data)
- Average mileage at test: 35,816 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.