Peugeot 108 Motor Finance - Owner Information | MLJ.org.uk

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Peugeot 108 Motor Finance - Owner Information | MLJ.org.uk

Last updated: 27 February 2026

The Peugeot 108, a popular subcompact car model known for its affordability and practicality, 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. This period saw extensive scrutiny by the Financial Conduct Authority (FCA), which found that many car dealerships engaged in mis-selling practices, particularly with discretionary commission arrangements.

How the Peugeot 108 was Typically Financed

Peugeot 108 buyers often financed their vehicles through PCP or HP agreements, typically ranging from £15,000 to £30,000 over a period of 36 to 48 months. Common lenders providing finance for the Peugeot 108 included Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. Under PCP agreements, customers would make regular monthly payments with an option at the end of the agreement period to either return the vehicle or pay a final lump sum (balloon payment) to own it outright. HP finance agreements, on the other hand, required full repayment of the loan by the end of the term without any further options.

The FCA Motor Finance Investigation

The FCA investigation uncovered significant mis-selling issues related to discretionary commission arrangements during vehicle financing. These practices affected 12.1 million eligible agreements (FCA, March 2026) across various car brands and models, including the Peugeot 108. Consumers were overcharged by an estimated £829 on average (FCA estimate), leading to a total financial impact of £7.5 billion (FCA, March 2026). This mis-selling occurred when finance brokers or dealerships received additional payments based on undisclosed arrangements, which often resulted in higher financing costs for consumers.

How to Information about agreements covered by the FCA schemewas affected by the FCA investigation, you should review several key aspects of your contract:

Relevant Dates: Agreements signed between 6 April 2007 and 1 November 2024 are subject to the FCA investigation.
Discretionary Commission Arrangements (DCA): Look for any mention of "discretionary commission" or similar terminology in your agreement documentation. If your finance arrangement involved such terms, it may have been mis-sold.

How to Complain Directly to Your Lender for Free

If you suspect that your Peugeot 108's financing was affected by the FCA investigation, you can complain directly to your lender at no cost. Common lenders associated with the Peugeot 108 include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. When contacting these lenders, provide clear details of your concerns, including relevant dates and any evidence from your finance agreement that indicates potential mis-selling. You do not need to engage a claims management company; you can handle the complaint process yourself or seek free legal advice through services like the Financial Ombudsman Service (FOS).

Sources and References

FCA estimate of affected agreements: 12.1 million (FCA, 2024)
Total financial impact: £7.5 billion (FCA, March 2026) (FCA, 2024)
FCA-estimated average per eligible agreement: £829 (FCA, 2024)

This information is provided for educational purposes and to help consumers understand their rights in the context of motor finance mis-selling investigations.

Peugeot 108 MOT Pass Rate

Based on 72,845 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Peugeot 108 has a pass rate of 87.2%. This is above the national average of 79.6%, meaning the 108 performs well in MOT testing.

The 108 pass rate is better than the overall Peugeot average of 77.1%. The average mileage at MOT for this model is 39,205 miles.

MOT pass rate: 87.2%
MOT failure rate: 12.8%
Tests analysed: 72,845 (2024 DVSA data)
Average mileage at test: 39,205 miles
Peugeot average pass rate: 77.1%
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

How many Peugeot 108 car finance agreements might have been mis-sold?

Between 6 April 2007 and 1 November 2024, 12.1 million eligible agreements personal contract purchase (PCP) agreements were made in the UK, including those for vehicles like the Peugeot 108. Some of these may have been mis-sold due to unfair practices or breaches of consumer law (FCA estimate).

What compensation can I receive if my Peugeot 108 motor finance agreement was mis-sold?

If your Peugeot 108's motor finance agreement was mis-sold, you might be entitled to compensation. The average claim could result in around £829 (FCA estimate). However, the exact amount depends on the circumstances of your case and whether there were any breaches of consumer law or unfair practices.

Is it possible for my Peugeot 108's motor finance agreement to be mis-sold?

Yes, it is possible that your Peugeot 108’s motor finance agreement could have been mis-sold. Mis-selling can occur if the lender failed to provide adequate information or acted in a way that was not fair, transparent, or in line with consumer protection laws.

What should I do if I suspect my Peugeot 108's motor finance agreement was mis-sold?

If you believe your Peugeot 108’s motor finance agreement may have been mis-sold, you can complain directly to the lender for free. You do not need a claims management company to assist with this process.

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.