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Lexus Car Finance Mis-Selling — FCA Investigation

Last updated: 24 May 2026

Lexus cars were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period from 6 April 2007 to 1 November 2024, when the Financial Conduct Authority (FCA) was investigating motor finance mis-selling. Many consumers who purchased Lexus vehicles through these financing arrangements might be affected by the FCA’s findings on discretionary commission payments made to car dealerships. ## How Lexus Cars Were Financed When purchasing a new Lexus vehicle, buyers often opted for PCP or HP agreements offered by financial institutions such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These agreements typically involved monthly payments over terms ranging from 12 to 60 months, with the option of returning the vehicle at the end of a PCP contract or purchasing it outright under an HP agreement. ## The FCA Motor Finance Investigation The FCA investigation uncovered widespread issues with discretionary commission arrangements between lenders and car dealerships. These commissions were paid based on the volume of finance agreements sold rather than the quality of service provided, potentially leading to mis-selling practices where customers might have been pushed into unsuitable financial products without full transparency or proper disclosure. According to the FCA’s findings, 12.1 million eligible agreements (FCA, March 2026) were affected by these commission arrangements. The total value of these transactions amounted to £7.5 billion (FCA estimate), with an average loss per customer estimated at around £829 (FCA estimate). This investigation highlighted significant concerns about the fairness and transparency in car financing processes. ## How to Check Your Agreement - Type of Financing: Verify if the financing was a PCP or HP agreement. - Lender Information: Identify which financial institution provided the loan (e.g., Black Horse, Barclays Partner Finance). If your Lexus purchase fits these criteria, there is a possibility that you might be eligible to claim compensation due to potential mis-selling practices. ## How to Complain Directly to Your Lender for Free You do not need a claims management company to pursue your case. Instead, you can complain directly to the financial institution that provided your Lexus finance agreement. Common lenders include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. When contacting these lenders, provide clear details about your purchase date, financing type, and any specific concerns regarding mis-selling practices. You can also seek support from the Financial Ombudsman Service (FOS) if your initial complaint is not resolved satisfactorily. ## Sources and References - FCA estimates on affected agreements: 12.1 million (FCA estimate) - Total value of transactions: £7.5 billion (FCA estimate) - FCA-estimated scheme average per eligible agreement: £829 (FCA estimate) For more information, consult the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) websites for detailed guidance on motor finance mis-selling claims.

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.

Lexus MOT Pass Rate — 2024 Data

Across 159,472 MOT tests in 2024, Lexus vehicles have an overall pass rate of 88.4%. This is above the national average of 79.6%. DVSA data covers 57 Lexus models with sufficient test volume.

Overall pass rate: 88.4%
Total MOT tests (2024): 159,472
Models with data: 57
National average: 79.6%

Best Lexus models for MOT pass rate

Lexus Ux: 96.1% pass rate (11,524 tests)
Lexus Ux 300E: 96.1% pass rate (667 tests)
Lexus Es: 95.8% pass rate (3,546 tests)
Lexus Rx: 94.5% pass rate (13,981 tests)
Lexus Nx: 93.5% pass rate (27,755 tests)

Lexus models with lowest MOT pass rate

Lexus Ls400: 79.1% pass rate (799 tests)
Lexus Rx350: 78.4% pass rate (579 tests)
Lexus Is220: 77.6% pass rate (4,821 tests)
Lexus Is200: 76.5% pass rate (6,155 tests)
Lexus Rx300: 76.5% pass rate (3,598 tests)

Lexus MOT Reliability Trend (2022-2024)

Lexus pass rates have remained stable: 88.1% in 2022, 88.4% in 2023, and 88.4% in 2024.

2022: 88.1% pass rate (160,917 tests)
2023: 88.4% pass rate (169,338 tests)
2024: 88.4% pass rate (159,472 tests)

Based on 489,727 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 by Lexus?

Motor finance mis-selling by Lexus occurs when customers are sold inappropriate or unsuitable financial products for their car purchase. This can include being misled about the terms and conditions of a loan, not receiving full disclosure regarding interest rates or repayment schedules, or being pressured into taking on more debt than they can afford.

How many people have been affected by mis-sold motor finance agreements involving Lexus?

According to estimates from the Financial Conduct Authority (FCA), 12.1 million eligible agreements (FCA, March 2026) potentially mis-sold in the UK between April 2007 and November 2024. While this figure includes multiple car brands, it is likely that a significant number of customers involved Lexus vehicles.

What should I do if I suspect my Lexus motor finance agreement was mis-sold?

If you believe your Lexus motor finance agreement may have been mis-sold to you, the first step is to review the terms and conditions thoroughly. You can also complain directly to your lender for free. They are required by law to investigate complaints about financial products.

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

Compensation amounts vary depending on the specifics of each case, but the average payout has been around £829 (FCA estimate) based on historical claims data. Factors such as the duration and nature of mis-selling will influence the compensation amount.

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.