The Lexus LC was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period, which spanned from 6 April 2007 to 1 November 2024. The FCA investigation revealed widespread mis-selling in the motor finance industry, affecting millions of consumers who purchased vehicles like the Lexus LC on various financing schemes.
How the Lexus LC was Typically Financed
The typical finance amount for a Lexus LC ranges from £15,000 to £30,000, with PCP agreements usually spanning 36 to 48 months. Common lenders that provided finance for the Lexus LC during this period include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Under PCP financing, a balloon payment or Guaranteed Minimum Future Value (GMFV) is typically due at the end of the agreement term. This final lump sum represents an estimate of what the vehicle will be worth when the finance period ends. If the estimated value is correct, the consumer can choose to return the Lexus LC and walk away without further payments, buy it outright for the balloon payment amount, or refinance the remaining balance.
The FCA Motor Finance Investigation
The FCA investigation uncovered that many consumers were misled about their PCP and HP finance agreements due to
discretionary commission arrangements between lenders and dealers. These arrangements allowed dealers to receive additional commissions if they sold higher-interest rate deals or more expensive optional insurance products alongside the vehicle financing.
According to the FCA, these practices affected 12.1 million eligible agreements (FCA, March 2026) across the UK motor finance industry from April 2007 to November 2024. The total mis-selling amounted to £7.5 billion (FCA, March 2026), with an average of £829 per consumer agreement (FCA estimate).
The investigation led to significant changes in the way lenders and dealers conduct business, as well as stricter regulations to protect consumers from similar practices in the future.
How to Check Your Agreement Review Your Contract: Look through your original finance contract or any renewal documents for terms such as "Discretionary Commission Arrangement" (DCA) or similar phrases indicating that additional fees were included in your deal.
2.
Check Relevant Dates: Ensure that your finance agreement was signed between 6 April 2007 and 1 November 2024, the period covered by the FCA's investigation.
3.
Look for DCA Markings: If your contract mentions a "DCA" or similar terminology, it is likely that discretionary commissions were involved in setting up your finance agreement.
If you suspect that your Lexus LC was sold under unfair financing terms due to the FCA's findings, you can complain directly to your lender without needing a
claims management company. Common lenders like Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance have dedicated customer service teams who will address your concerns.
When contacting your lender:
1.
Gather Documentation: Prepare all relevant documents such as your finance agreement, purchase receipts, and any correspondence with the dealership.
2.
Contact Your Lender: Reach out to your lender's customer service department via phone or email to explain the issue and provide documentation.
3.
Follow Up: Ensure that you receive a written response outlining the next steps in addressing your concerns.
You do not need a claims management company to handle this process. By contacting your lender directly, you can address any issues with your finance agreement without additional costs.
Sources and References
- Financial Conduct Authority (FCA). (2024). Motor Finance Investigation.
- Financial Ombudsman Service (FOS). (2024). Guidance on Discretionary Commission Arrangements.
Based on 400 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Lexus Lc has a pass rate of 94.0%. This is above the national average of 79.6%, meaning the Lc performs well in MOT testing.
The Lc pass rate is better than the overall Lexus average of 88.4%. The average mileage at MOT for this model is 25,484 miles.
- MOT pass rate: 94.0%
- MOT failure rate: 6.0%
- Tests analysed: 400 (2024 DVSA data)
- Average mileage at test: 25,484 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.