The Tesla Model X was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the period covered by the Financial Conduct Authority's (FCA) motor finance investigation, which ran from 6 April 2007 to 1 November 2024. This investigation revealed widespread issues with
discretionary commission arrangements that affected millions of consumers across the UK.
## How the Tesla Model X was Typically Financed
The Tesla Model X was often financed through Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, with typical finance amounts ranging from £15,000 to £30,000. Common PCP terms for the Model X were 36 to 48 months, making it a popular choice for many car buyers seeking flexible repayment options.
When purchasing a Tesla Model X on PCP, customers would typically make monthly payments over the agreed term and have an option at the end of the agreement either to buy out the vehicle for its guaranteed future value (GFV) or return it. The GFV represents a balloon payment, which is often higher than what the car might be worth on the second-hand market.
Several major lenders commonly provided finance for Tesla Model X vehicles during this period, including
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These lenders were instrumental in facilitating purchases of high-end models like the Tesla Model X by offering competitive financing options.
## The FCA Motor Finance Investigation
During its investigation into motor finance practices, the FCA uncovered significant issues with discretionary commission arrangements between car dealerships and finance companies. Dealers received additional payments from lenders for recommending specific finance deals, which could incentivize them to push customers towards products that were not in their best interest. This practice affected 12.1 million eligible agreements (FCA, March 2026) across the UK over the investigation period.
The total amount of mis-selling involved was estimated at £7.5 billion (FCA, March 2026), with an FCA-estimated average of £829 per eligible agreement. These figures highlight the widespread nature and scale of the issue, impacting countless car buyers who financed their vehicles through PCP or HP agreements during this period.
## How to Check Your Agreement
Relevant Dates: Ensure that your finance agreement for the Tesla Model X falls within the period from 6 April 2007 to 1 November 2024.
2.
Discretionary Commission Arrangements (DCA): Look for any mention of "discretionary commission" or similar arrangements in your documentation. These payments were often made by finance companies to dealers based on the type and term of the agreement recommended to customers.
3.
Finance Lenders: Check if your lender was one of those commonly associated with Tesla Model X financing, such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, or Santander Consumer Finance.
If you find any discrepancies or suspect that your finance deal might have been influenced by DCA practices, it is advisable to seek further information from your lender directly.
## How to
Complain Directly to Your Lender for Free
You do not need a
claims management company to address concerns about mis-selling. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all offer free complaint resolution processes through their internal customer service teams.
To start the process:
1.
Gather Documentation: Collect your finance agreement, payment records, and any relevant correspondence with your lender.
2.
Contact Your Lender: Reach out to your lender's customer service department via phone or email to initiate a formal complaint. Provide them with all necessary details and documentation.
3.
Follow Up: Keep track of the progress of your complaint and follow up regularly if there are delays.
You can complain directly to your lender for free, and this is often more straightforward than involving third-party claims management companies. The
Financial Ombudsman Service (
FOS) also provides an independent resolution service should your initial complaints not be resolved satisfactorily.
## Sources and References
- FCA estimate of affected agreements: 12.1 million
- Total mis-selling amount: £7.5 billion (FCA, March 2026)
- FCA-estimated scheme average per eligible agreement: £829 (FCA estimate)
Based on 4,464 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Tesla Model X has a pass rate of 83.6%. This is above the national average of 79.6%, meaning the Model X performs well in MOT testing.
The Model X pass rate is slightly below the overall Tesla average of 86.5%. The average mileage at MOT for this model is 63,313 miles.
- MOT pass rate: 83.6%
- MOT failure rate: 16.4%
- Tests analysed: 4,464 (2024 DVSA data)
- Average mileage at test: 63,313 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.