The Tesla Model 3 was 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. The FCA found that many consumers who financed their Tesla Model 3 through these agreements may have been mis-sold by dealerships and lenders using unfair
discretionary commission arrangements.
## How the Tesla Model 3 was Typically Financed
The typical finance amount for a new Tesla Model 3 ranged from £15,000 to £30,000. Most consumers opted for Personal Contract Purchase (PCP) plans with terms of 36 or 48 months. The main lenders providing finance for the Tesla Model 3 included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Under PCP agreements, a balloon payment is often required at the end of the contract if you wish to keep the car. This final payment can be significant and may not reflect the actual value of the vehicle at that time. some HP agreements might have included higher interest rates or hidden fees, which were not always transparently disclosed.
## The FCA Motor Finance Investigation
The FCA investigation uncovered that many consumers who financed their Tesla Model 3 through PCP or HP plans may have been subjected to unfair discretionary commission arrangements by dealerships and lenders. These arrangements involved the payment of additional commissions to dealers based on the type of finance agreement chosen by customers, potentially leading to higher interest rates and fees without clear disclosure.
The investigation found that 12.1 million eligible agreements (FCA, March 2026) during the period in question (FCA estimate), resulting in a total impact of £7.5 billion (FCA, March 2026). On average, consumers who financed their Tesla Model 3 could have been overcharged by around £829 per agreement (FCA estimate).
## How to Check Your Agreement Key indicators include:
-
Discretionary Commission Arrangements: Look for any mention of "DCA" or similar terminology that indicates discretionary commission arrangements.
-
Relevant Dates: Check if your finance agreement was arranged between 6 April 2007 and 1 November 2024.
-
Lender Details: Identify the lender providing the finance (e.g., Black Horse, Barclays Partner Finance, Close Brothers Motor Finance).
If you identify any of these markers in your agreement, it is likely that your financing arrangement may have been affected by the unfair practices identified during the FCA investigation.
## How to
Complain Directly to Your Lender for Free
You do not need a
claims management company; you can complain directly to your lender at no cost. Common lenders associated with Tesla Model 3 finance agreements include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When lodging a complaint, gather all relevant documentation such as the original finance agreement, correspondence with the dealership, and any evidence of overcharging or unfair practices. Provide this information to your lender along with a clear statement of your concerns.
You can complain directly to your lender for free and seek redress without engaging additional third-party services. Remember that financial institutions are required by law to address consumer complaints fairly and transparently.
## Sources and References
- Financial Conduct Authority (FCA). "FCA Motor Finance Investigation." 2024.
- Office for National Statistics (ONS) Census 2021.
Based on 1,074 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Tesla Model 3 has a pass rate of 90.8%. This is above the national average of 79.6%, meaning the Model 3 performs well in MOT testing.
The Model 3 pass rate is better than the overall Tesla average of 86.5%. The average mileage at MOT for this model is 45,784 miles.
- MOT pass rate: 90.8%
- MOT failure rate: 9.2%
- Tests analysed: 1,074 (2024 DVSA data)
- Average mileage at test: 45,784 miles
- Tesla average pass rate: 86.5%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.