The Skoda Kodiaq 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. This investigation uncovered widespread mis-selling practices across the motor finance industry, affecting an estimated 12.1 million eligible agreements (FCA, March 2026) worth £7.5 billion (FCA, March 2026) in total (FCA estimate). Affected customers have since been able to seek redress and compensation for losses incurred due to these unfair financial arrangements.
How the Skoda Kodiaq was Typically Financed
The Skoda Kodiaq is a popular family car that often comes with finance agreements from various lenders. Commonly, these agreements are structured as PCP or HP plans, offering flexible payment terms over 36 to 48 months (FCA estimate). The typical finance amount for the Skoda Kodiaq ranges between £15,000 and £30,000, depending on the model variant and specification chosen by the customer. During this period, lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance were frequently involved in providing finance for Skoda Kodiaq purchases.
In PCP agreements, customers make monthly payments with a final balloon payment or option to buy out the car at the end of the term. This structure often includes an interest charge and a Guaranteed Minimum Future Value (GMFV) which is the estimated value of the vehicle at the end of the finance agreement. The GMFV can sometimes be set artificially low, making it difficult for customers to exit their agreements early without significant penalties or losses.
The FCA Motor Finance Investigation
The FCA’s investigation into motor finance mis-selling practices revealed that many lenders were using
discretionary commission arrangements (DCAs) to generate revenue beyond the standard interest and fees charged on loans. This practice involved paying commissions based on a percentage of the total finance agreement value, rather than just the profit margin. As a result, sales staff had an incentive to push customers towards higher-cost agreements with less favourable terms.
According to the FCA’s estimates, these practices affected 12.1 million eligible agreements financing agreements during the investigation period (FCA estimate), resulting in losses of around £829 on average for each customer (FCA estimate). The total amount involved is estimated at £7.5 billion (FCA, March 2026) across all affected customers and agreements (FCA estimate).
How to Check Your Agreement Look for any mention of discretionary commission arrangements or similar phrases that indicate a salesperson's incentives were tied to the total value of the finance agreement rather than just the interest rate.
Relevant dates to consider are from 6 April 2007 up until 1 November 2024, as this was the timeframe during which such practices were prevalent. check if your contract includes a clause mentioning “DCA” or similar terminology, indicating that discretionary commissions may have been involved in structuring your agreement.
If you suspect that your Skoda Kodiaq finance agreement was affected by these practices, you can complain directly to the lender without needing a
claims management company. Common lenders for Skoda Kodiaq finance include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
Lenders are required to respond to your complaint within a reasonable timeframe and provide a fair resolution based on their internal policies or the
Financial Ombudsman Service (
FOS) guidelines. You do not need a claims management company; you can handle this process yourself without incurring additional fees.
Sources and References
- Financial Conduct Authority, 2024
- Financial Ombudsman Service, 2024
Based on 33,244 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Skoda Kodiaq has a pass rate of 90.8%. This is above the national average of 79.6%, meaning the Kodiaq performs well in MOT testing.
The Kodiaq pass rate is better than the overall Skoda average of 82.9%. The average mileage at MOT for this model is 47,645 miles.
- MOT pass rate: 90.8%
- MOT failure rate: 9.2%
- Tests analysed: 33,244 (2024 DVSA data)
- Average mileage at test: 47,645 miles
- Skoda average pass rate: 82.9%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.