The Tesla Model Y was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period from 6 April 2007 to 1 November 2024. This period saw a significant number of motor finance agreements being scrutinised for potential mis-selling, particularly in cases where car dealerships were incentivised through discretionary commission arrangements.
How the Tesla Model Y was Typically Financed
The Tesla Model Y was often financed through PCP and HP agreements within the range of £15,000 to £30,000. Common finance providers for the Model Y include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These lenders typically offer terms ranging from 36 to 48 months.
In PCP agreements, a balloon payment is often required at the end of the term if the customer decides not to buy or return the vehicle. This final payment can represent a significant financial commitment, particularly given that the Model Y is a high-value car with an average financing range between £15,000 and £30,000.
The FCA Motor Finance Investigation
The FCA's investigation into motor finance agreements uncovered widespread issues related to discretionary commission arrangements. These arrangements allowed dealerships to receive additional payments from lenders for every agreement sold, which could influence the advice given to customers regarding their financing options. As a result, many consumers were pushed towards more expensive financing products like PCP rather than potentially cheaper HP or cash purchases.
According to the FCA’s investigation findings, 12.1 million eligible agreements (FCA, March 2026) by these discretionary commission arrangements (FCA estimate). The total estimated cost to consumers was £7.5 billion (FCA, March 2026) (FCA, March 2026).
How to Check Your Agreement Look for any mention of "Discretionary Commission Arrangements" or similar terms like "DCA." ensure that your financing period falls within the investigation period from 6 April 2007 to 1 November 2024.
If you find these elements in your agreement and suspect mis-selling, it is important to document any details that may indicate improper advice or misleading information provided by the dealership during your purchase process.
You do not need a claims management company to complain about potential mis-selling of your Tesla Model Y finance agreement. You can contact your lender directly and start the complaint process for free. Common lenders for Tesla include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When you approach your lender with a complaint, provide them with all relevant documentation from your original financing contract and any evidence of misleading information or improper advice received during the purchase process. The lender should then review your case according to their internal procedures and respond within 8 weeks (FCA guidelines).
If your lender's response is unsatisfactory, you have the right to escalate your complaint to the Financial Ombudsman Service (FOS) for a free and impartial review.
Sources and References
- FCA motor finance investigation findings
- Financial Conduct Authority (2024)
- Office for National Statistics Census 2021