Lexus IS Motor Finance - Owner Information | MLJ.org.uk

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Lexus IS Motor Finance - Owner Information | MLJ.org.uk

Last updated: 27 February 2026

The Lexus IS was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period from 6 April 2007 to 1 November 2024. These agreements often involved discretionary commission arrangements that may have resulted in higher costs for consumers due to mis-selling practices by lenders.

How the Lexus IS was Typically Financed

The typical financing of a Lexus IS included Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, with finance amounts ranging from £15,000 to £30,000. Common terms for these agreements were 36 to 48 months, during which time the car would be under lease or hire. In a PCP agreement, there is often an optional balloon payment at the end of the term that allows customers to buy the car outright if they choose to do so. This final payment can vary widely depending on the residual value estimated by the lender and the actual market value of the vehicle when the agreement concludes. Common lenders for Lexus IS finance include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. Each of these financial institutions may have used discretionary commission arrangements that could affect the terms offered to buyers.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) launched an investigation into motor finance agreements during the period from 6 April 2007 to 1 November 2024, focusing on discretionary commission arrangements. These arrangements allowed lenders to receive additional payments for selling products like GAP insurance and other add-ons that could have inflated the cost of financing a Lexus IS. The FCA found that 12.1 million eligible agreements (FCA, March 2026) by these practices (FCA estimate), with an estimated total amount of £7.5 billion (FCA, March 2026) in overcharges (FCA estimate). On average, each consumer was likely to have paid approximately £829 more than they should have due to mis-selling practices (FCA estimate).

How to Check Your Agreement Review Your Agreement: Look for any mention of DCA (Discretionary Commission Arrangement) in your finance contract.

2. Check Dates: Ensure your finance agreement falls within the timeframe from 6 April 2007 to 1 November 2024. 3. Balloon Payments: If you have a PCP, check if there were any unusual charges or fees related to end-of-term options.

How to Complain Directly to Your Lender for Free

If you believe your finance agreement was affected by the FCA investigation and resulted in higher costs than necessary, you can complain directly to your lender without needing to use a claims management company. Common lenders associated with Lexus IS financing include:

Black Horse
Barclays Partner Finance
Close Brothers Motor Finance
MotoNovo Finance
Santander Consumer Finance

Each of these lenders has customer service departments that can help you review your agreement and address any concerns. You do not need a claims management company to file a complaint; the process is free and straightforward.

Sources and References

Financial Conduct Authority (FCA). "Investigation into Motor Finance Agreements." 2024.
Financial Ombudsman Service (FOS), various reports on motor finance disputes, 2019-2024.

Lexus Is [MOT Pass Rate](https://mlj.org.uk/tools/mot-statistics)

Based on 13,023 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Lexus Is has a pass rate of 90.5%. This is above the national average of 79.6%, meaning the Is performs well in MOT testing.

The Is pass rate is better than the overall Lexus average of 88.4%. The average mileage at MOT for this model is 77,458 miles.

MOT pass rate: 90.5%
MOT failure rate: 9.5%
Tests analysed: 13,023 (2024 DVSA data)
Average mileage at test: 77,458 miles
Lexus average pass rate: 88.4%
National average pass rate: 79.6%

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

Frequently Asked Questions

What is motor finance mis-selling related to Lexus IS cars?

Motor finance mis-selling in relation to Lexus IS cars involves situations where lenders may have breached consumer credit law or acted unfairly when selling car finance agreements for these vehicles.

How can I check if my Lexus IS finance agreement was mis-sold?

To determine if your Lexus IS motor finance agreement was mis-sold, review the terms of your contract and assess whether you were provided with accurate information about repayment terms, interest rates, or alternatives to the loan. You can also consult a financial advisor for guidance.

What are my rights as a consumer if I suspect Lexus IS motor finance mis-selling?

As a consumer, you have the right to receive fair and transparent information about your Lexus IS car finance agreement. If you believe the agreement was misrepresented or that unfair practices were involved, you can complain directly to your lender for free.

How many people in the UK might be affected by motor finance mis-selling involving cars like the Lexus IS?

An estimated 12.1 million eligible agreements (FCA, March 2026) could have been affected by motor finance mis-selling practices from April 2007 to November 2024, which includes various car models including high-end vehicles such as the Lexus IS (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.