The Tesla Model S 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 dealerships engaged in
discretionary commission arrangements with lenders, leading to millions of affected customers who paid inflated interest rates and fees on their finance agreements.
How the Tesla Model S was Typically Financed
During the investigation period, the Tesla Model S was frequently financed through PCP and HP plans offered by several lenders, including
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These financing options typically covered a range of £15,000 to £30,000, with terms spanning 36 to 48 months.
PCP agreements often included balloon payments at the end of the term, which could be higher than expected due to the discretionary commission arrangements that inflated residual values and interest rates. This meant that many customers found themselves paying significantly more for their Tesla Model S than they initially anticipated.
The FCA Motor Finance Investigation
The FCA’s investigation revealed that 12.1 million eligible agreements (FCA, March 2026) by discretionary commission arrangements during the period from 6 April 2007 to 1 November 2024 (FCA estimate). These practices led to a total of £7.5 billion (FCA, March 2026) in overcharged fees and interest payments across all vehicles (FCA, March 2026).
The investigation found that lenders were incentivised by dealerships to offer finance agreements at inflated rates, leading to higher costs for consumers without their knowledge or consent.
How to Check Your Agreement Look for any indication of a discretionary commission arrangement (DCA). Key things to check include:
- Relevant Dates: Ensure that your finance agreement was signed between 6 April 2007 and 1 November 2024.
- Discretionary Commission Arrangement (DCA): Check if there is any mention of a DCA in the terms of your agreement.
If you find these elements, it’s likely that your finance agreement was affected by the FCA findings.
You do not need a
claims management company to complain about your Tesla Model S finance agreement. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all have dedicated teams that handle customer complaints.
Start by contacting the lender directly through their official complaint process. Provide evidence of any discrepancies or concerns you have regarding the terms of your agreement, including details about potential discretionary commission arrangements. You can complain for free without incurring additional fees.
You can also escalate your complaint to the
Financial Ombudsman Service (
FOS) if your lender does not resolve the issue satisfactorily.
Sources and References
- FCA estimate: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion (FCA, March 2026) total, £829 average per eligible agreement
- Common lenders: Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, Santander Consumer Finance
Based on 7,399 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Tesla Model S has a pass rate of 83.6%. This is above the national average of 79.6%, meaning the Model S performs well in MOT testing.
The Model S pass rate is slightly below the overall Tesla average of 86.5%. The average mileage at MOT for this model is 83,973 miles.
- MOT pass rate: 83.6%
- MOT failure rate: 16.4%
- Tests analysed: 7,399 (2024 DVSA data)
- Average mileage at test: 83,973 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.