Kia Car Finance Claim - Sportage, Ceed, Niro [2026]

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Kia Car Finance Claim - Sportage, Ceed, Niro [2026]

Last updated: 23 August 2026

Kia cars have long been popular choices for UK consumers, particularly those seeking reliable and stylish vehicles. During the period from 6 April 2007 to 1 November 2024, many Kia car buyers opted for Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements. These financing options were commonly offered by various lenders including Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.

How Kia Cars Were Financed

When purchasing a new Kia car on finance, consumers often turned to these established lenders for their financial products. Commonly, PCP agreements provided flexible options such as balloon payments at the end of the contract or an option to buy out the remaining balance. Meanwhile, HP plans typically required regular monthly payments over a fixed term without any residual value adjustments. These financing methods were designed to make car ownership more accessible by breaking down significant upfront costs into manageable instalments.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) launched an investigation into the motor finance industry due to concerns about discretionary commission arrangements between lenders and dealerships. According to the FCA estimate, 12.1 million eligible agreements (FCA, March 2026) during this period (FCA estimate). This equated to a total of £7.5 billion in mis-sold finance contracts (FCA estimate), with an average amount per agreement being approximately £829 (FCA estimate). The investigation highlighted that some lenders were providing dealers with financial incentives, known as discretionary commissions, based on the type and value of financing products sold to customers. This practice could have influenced salespeople to recommend more expensive finance plans over less costly alternatives, potentially leading to higher interest rates or longer contract terms for consumers.

How to Check Your Agreement To determine if your finance deal falls under this category, consider the following factors:

Date Range: Your agreement must fall between 6 April 2007 and 1 November 2024.
Finance Type: The contract was likely a PCP or HP arrangement.
Lender Identification: Review any paperwork you received at the time of purchase to identify the finance provider.

If your Kia car finance agreement matches these criteria, it is advisable to seek further information from your lender regarding potential mis-selling issues.

How to Complain Directly to Your Lender for Free

You do not need a claims management company to address any concerns about your Kia finance agreement. Each of the common lenders (Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, Santander Consumer Finance) has dedicated customer service teams that can assist you with complaints and inquiries. Contacting them directly allows you to receive tailored advice without incurring additional costs or delays associated with third-party companies. By reaching out to your lender using their official contact methods (such as phone, email, or online forms), you can initiate a complaint process aimed at resolving any issues related to mis-selling practices. This direct approach ensures that you have full control over the proceedings and receive transparent communication from the outset.

Sources and References

Financial Conduct Authority (FCA) estimates on affected agreements and total mis-sold finance contracts.
FCA investigation findings regarding discretionary commission arrangements in motor finance.
Office for National Statistics (ONS) Census data, as applicable to demographic context.
FCA Compensation: FCA Scheme Figures

The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.

Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.

Kia MOT Pass Rate - 2024 Data

Across 952,356 MOT tests in 2024, Kia vehicles have an overall pass rate of 81.4%. This is close to the national average of 79.6%. DVSA data covers 131 Kia models with sufficient test volume.

Overall pass rate: 81.4%
Total MOT tests (2024): 952,356
Models with data: 131
National average: 79.6%

Best Kia models for MOT pass rate

Kia Stonic Gt-Line S Isg Mhev: 96.1% pass rate (660 tests)
Kia Stonic Gt-Line Isg Mhev: 95.2% pass rate (890 tests)
Kia Niro 2 Phev S-A: 94.4% pass rate (1,834 tests)
Kia Stonic Connect Mhev: 94.4% pass rate (771 tests)
Kia Niro 2 Ev: 94.3% pass rate (5,122 tests)

Kia models with lowest MOT pass rate

Kia Carens: 75.3% pass rate (15,909 tests)
Kia Magentis: 70.8% pass rate (566 tests)
Kia Proceed: 69.9% pass rate (1,483 tests)
Kia Sedona: 68.7% pass rate (5,598 tests)
Kia Cerato: 64.8% pass rate (869 tests)

Kia MOT Reliability Trend (2022-2024)

Kia pass rates have remained stable: 81.8% in 2022, 81.6% in 2023, and 81.4% in 2024.

2022: 81.8% pass rate (946,137 tests)
2023: 81.6% pass rate (1,013,340 tests)
2024: 81.4% pass rate (952,356 tests)

Based on 2,911,833 MOT tests across three years (DVSA open data).

Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.

Frequently Asked Questions

What is motor finance mis-selling involving Kia cars?

Motor finance mis-selling involving Kia cars occurs when consumers are sold a financial product that does not meet their needs or they do not understand fully. This can include being encouraged to take out unnecessary add-ons, high-interest rates, and complex repayment terms.

How many Kia customers might have been affected by motor finance mis-selling?

Between 6 April 2007 and 1 November 2024, an estimated 5.8 million people took out personal contract purchase (PCP) agreements for new cars, with a significant number potentially being Kia vehicles (FCA estimate).

What should I do if I suspect I was mis-sold motor finance on my Kia car?

If you suspect that you were mis-sold motor finance on your Kia car, you can complain directly to your lender for free without needing a claims management company. They will review the terms of your agreement and address any concerns or issues.

What kind of compensation might I receive if I was mis-sold motor finance on my Kia?

If you were mis-sold motor finance on your Kia, the FCA-estimated scheme average is £829 per eligible agreement. based on the specifics of your case. The Financial Conduct Authority estimates that around £7.5 billion (FCA, March 2026) has been paid out in PCP claims since April 2007 (FCA estimate).

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.