The Peugeot 508, a sleek and modern car from the French automaker Peugeot, was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period spanning from 6 April 2007 to 1 November 2024. This period saw widespread concerns over motor finance mis-selling practices that affected millions of consumers across the UK.
How the Peugeot 508 was Typically Financed
Peugeot 508 models were often financed through Personal Contract Purchase (PCP) agreements, with typical financing amounts ranging from £15,000 to £30,000. The standard PCP term for these vehicles was usually between 36 and 48 months. During this period, major lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance commonly provided finance for Peugeot cars.
The structure of a typical PCP agreement included an initial deposit payment, followed by monthly instalments over the term of the loan. At the end of the contract, consumers had the option to buy the car outright through a final lump sum called a balloon payment or return the vehicle without further obligation. This flexibility made PCP agreements popular among buyers looking for manageable monthly payments while retaining the option to own the car at the end of the agreement.
The FCA Motor Finance Investigation
The FCA launched an investigation into
discretionary commission arrangements within motor finance, revealing significant issues with how lenders and dealerships were incentivised. These arrangements often led to consumers being sold inappropriate or overly expensive financial products. As a result, it was estimated that 12.1 million eligible agreements (FCA, March 2026) were potentially affected by mis-selling practices during the investigation period. The total amount of money involved in these flawed agreements was approximately £7.5 billion (FCA, March 2026), with an average claim of £829 per agreement (FCA estimate).
The FCA’s findings highlighted a complex web of financial incentives that encouraged dealers to push certain products, often at the expense of transparency and consumer choice. This investigation underscored the need for stricter regulations and better protection mechanisms for consumers in motor finance agreements.
How to Check Your Agreement Look for clauses or terms that mention discretionary commission arrangements or any incentives provided to dealerships based on specific products sold. The relevant dates for these agreements fall within the period from 6 April 2007 to 1 November 2024.
Another key term to watch out for is "DCA," which stands for Discretionary
Commission Arrangement. This refers to any commission-based incentives that might have influenced how your finance agreement was structured or sold to you.
If you suspect that your Peugeot 508 finance agreement may be affected by the FCA’s investigation, you can complain directly to your lender without incurring any additional costs. Common lenders for Peugeot vehicles include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When complaining, it is important to provide clear evidence of why you believe your agreement was mis-sold. This can include details from your contract documents, correspondence with the dealership, and any relevant dates that fall within the FCA’s investigation period. The lender will review your complaint and respond according to their internal procedures.
You do not need a
claims management company to handle this process on your behalf; you are entitled to complain directly to your lender for free. This approach ensures transparency and allows you to retain full control over the complaint process.
Sources and References
- Financial Conduct Authority (FCA) estimates from FCA reports.
- Office for National Statistics (ONS) Census 2021 data for population figures.
- Financial Ombudsman Service (FOS) guidelines on motor finance complaints.
Peugeot 508 [MOT Pass Rate](https://mlj.org.uk/tools/mot-statistics)
Based on 17,212 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Peugeot 508 has a pass rate of 79.3%. This is close to the national average of 79.6%, meaning the 508 performs about average in MOT testing.
The 508 pass rate is better than the overall Peugeot average of 77.1%. The average mileage at MOT for this model is 95,770 miles.
- MOT pass rate: 79.3%
- MOT failure rate: 20.7%
- Tests analysed: 17,212 (2024 DVSA data)
- Average mileage at test: 95,770 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.