The Peugeot 208, a popular compact car model, was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the period under investigation by the Financial Conduct Authority (FCA), from 6 April 2007 to 1 November 2024. Many consumers who purchased their Peugeot 208 through these financing methods may have been affected by mis-selling practices related to
discretionary commission arrangements, as highlighted in the FCA's investigation.
How the Peugeot 208 was Typically Financed
Peugeot 208 models were often financed using PCP and HP agreements with typical finance amounts ranging from £15,000 to £30,000. Common lenders for these vehicles included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. PCP terms typically ranged from 36 to 48 months, with a balloon payment at the end of the agreement.
Discretionary commission arrangements allowed dealerships to receive additional payments on top of their standard commissions when consumers opted for more expensive financing options or higher-cost add-ons such as
gap insurance and warranties. This led to a potential conflict of interest where dealers were incentivised to push customers towards finance deals that earned them higher commissions rather than the best deal for the customer.
The FCA Motor Finance Investigation
The FCA investigation uncovered widespread mis-selling practices in motor finance, particularly through discretionary commission arrangements. 12.1 million eligible agreements (FCA, March 2026) across various car manufacturers and dealerships were affected by these practices, resulting in an estimated £7.5 billion (FCA, March 2026) total loss to consumers (FCA estimate), with the average consumer losing around £829 (FCA estimate). The investigation highlighted that many consumers were unaware of these commission arrangements and how they influenced the advice given during the finance application process.
How to Check Your Agreement Look for key phrases such as "discretionary commission" or "DCA." check the dates of when your agreement started and ended to see if they fall within the FCA investigation period (6 April 2007 to 1 November 2024). If you find any suspicious terms or discover that your agreement was made during this timeframe, it is advisable to seek further advice from a financial expert.
If you believe your Peugeot 208 finance agreement was mis-sold due to discretionary commission arrangements, the first step is to complain directly to your lender. Common lenders for the Peugeot 208 include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. Each of these lenders has a dedicated complaints process available at no cost to you.
You do not need a
claims management company to handle your complaint; you can manage it yourself by following the lender's official complaint procedure. This typically involves submitting detailed evidence supporting your claim, including any correspondence with the dealership and documentation outlining the terms of your finance agreement. By taking this approach, you can avoid additional fees and ensure that your case is handled directly without intermediaries.
Sources and References
- Financial Conduct Authority (FCA) investigation period: 6 April 2007 to 1 November 2024
- Number of agreements affected: 12.1 million (FCA estimate)
- Total loss to consumers: £7.5 billion (FCA, March 2026)
- Average consumer loss: £829 (FCA estimate)
Based on 176,076 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Peugeot 208 has a pass rate of 78.8%. This is close to the national average of 79.6%, meaning the 208 performs about average in MOT testing.
The 208 pass rate is in line with the overall Peugeot average of 77.1%. The average mileage at MOT for this model is 59,530 miles.
- MOT pass rate: 78.8%
- MOT failure rate: 21.2%
- Tests analysed: 176,076 (2024 DVSA data)
- Average mileage at test: 59,530 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.