Tesla cars were commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period, which ran from 6 April 2007 to 1 November 2024. This investigation uncovered significant issues related to
discretionary commission arrangements that may have affected many Tesla owners who financed their vehicles through these schemes.
How Tesla Cars Were Financed
Tesla cars are often financed through various lenders in the UK, including
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. During the period of interest, typical PCP agreements would involve a deposit payment followed by monthly instalments over a set term, usually two to four years. At the end of this term, customers have the option to either buy the car outright for its Guaranteed Future Value (GFV) or return it and walk away if they no longer want the vehicle.
Hire Purchase agreements are similar but differ in that the customer owns the vehicle from day one and makes regular payments until the loan is fully repaid. Both financing methods were widely used by Tesla buyers during this period, often facilitated by dealerships partnering with various finance companies to offer these products directly to consumers.
The FCA Motor Finance Investigation
The FCA's investigation into motor finance agreements revealed that many customers who financed their vehicles through PCP and HP schemes may have been overcharged due to discretionary commission arrangements. This affected 12.1 million eligible agreements (FCA, March 2026) across the UK, with an estimated total of £7.5 billion being overcharged on these deals (FCA estimate). The average overcharge per customer was around £829 (FCA estimate).
These findings highlight that car dealers and finance companies may have benefited from commission structures that were not always in the best interest of consumers. As a result, Tesla owners who financed their cars during this period might be covered by the FCA redress scheme. if they were part of an affected agreement.
How to Check Your Agreement Look for any references to discretionary commissions or other fees that may not have been clearly disclosed at the time of purchase. The critical dates to consider are agreements made between 6 April 2007 and 1 November 2024.
You can also contact your finance provider directly to inquire about whether your specific agreement falls under the scope of the FCA investigation findings. Providing your lender with relevant contract details, such as the date of signing and any correspondence regarding your financing terms, will help them assess if you are covered by the FCA redress scheme.
If you believe that your Tesla finance agreement was affected by discretionary commission issues during the FCA investigation period, it is advisable to complain directly to your lender. Common lenders for Tesla cars include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When making a complaint, gather all relevant documentation related to your finance agreement, including correspondence with the dealer or lender, payment records, and any other pertinent information that supports your case. You can submit your complaint via phone, email, or post directly to the customer service department of your finance provider.
you do not need a
claims management company to handle your complaint; many lenders have established processes in place for addressing FCA-related issues without needing third-party intervention. This ensures that the resolution process remains straightforward and cost-effective for consumers seeking redress.
Sources and References
- Financial Conduct Authority (FCA) estimates on affected agreements, total overcharges, and average per-customer amounts.
- Financial Ombudsman Service (FOS), as a potential avenue for resolving disputes beyond direct lender complaints.
FCA Compensation: FCA Scheme Figures
The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.
Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.
Across 88,812 MOT tests in 2024, Tesla vehicles have an overall pass rate of 86.5%. This is above the national average of 79.6%. DVSA data covers 13 Tesla models with sufficient test volume.
- Overall pass rate: 86.5%
- Total MOT tests (2024): 88,812
- Models with data: 13
- National average: 79.6%
Best Tesla models for MOT pass rate
- Tesla Model Y Long Range Awd: 93.8% pass rate (726 tests)
- Tesla Model Y Rwd: 92.3% pass rate (745 tests)
- Tesla Model 3: 90.8% pass rate (1,074 tests)
- Tesla Model 3 Standard Range +: 87.5% pass rate (21,535 tests)
- Tesla Model S Long Range Awd: 87.4% pass rate (975 tests)
Tesla models with lowest MOT pass rate
- Tesla Model 3 Long Range Awd: 87.2% pass rate (37,667 tests)
- Tesla Model 3 Performance Awd: 84.2% pass rate (11,506 tests)
- Tesla Model X Long Range Awd: 84.2% pass rate (1,557 tests)
- Tesla Model S: 83.6% pass rate (7,399 tests)
- Tesla Model X: 83.6% pass rate (4,464 tests)
Tesla MOT Reliability Trend (2022-2024)
Tesla MOT pass rates have declined slightly, from 88.4% in 2022 to 86.5% in 2024 (-1.9 percentage points).
- 2022: 88.4% pass rate (26,387 tests)
- 2023: 86.4% pass rate (55,476 tests)
- 2024: 86.5% pass rate (88,812 tests)
Based on 170,675 MOT tests across three years (DVSA open data).
Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.