The Toyota Corolla has been a popular choice among UK drivers, with many opting to purchase this model on
Personal Contract Purchase (PCP) or
Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period from 6 April 2007 to 1 November 2024. This article explores how these agreements were typically structured and what consumers should be aware of regarding potential mis-selling issues.
How the Toyota Corolla was Typically Financed
The Toyota Corolla, a reliable and popular compact car, is often purchased with finance arrangements such as PCP or HP. For a typical Corolla model, the financing amount usually ranges between £15,000 to £30,000 (FCA estimate). The common term for these agreements is 36 to 48 months.
When it comes to lenders, several financial institutions have provided finance for Toyota Corollas. These include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. PCP plans often come with a balloon payment at the end of the term, which is typically 30% to 50% of the car's original value (FCA estimate).
The FCA Motor Finance Investigation
The Financial Conduct Authority conducted an investigation into motor finance agreements between April 2007 and November 2024. A key focus was on
discretionary commission arrangements, which are payments made by lenders to dealers for each financed vehicle sold. This investigation found that these commissions could have influenced the way deals were structured, potentially at the expense of consumers.
According to the FCA's findings, 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA, March 2026). The average compensation for each affected consumer was estimated to be around £829 (FCA estimate).
How to Check Your Agreement Look for any references to "Discretionary Commission Arrangements" or "DCA," as these are key terms indicating that a commission-based deal was likely in place.
Relevant dates also play a crucial role: if your agreement was signed between 6 April 2007 and 1 November 2024, it falls within the investigation period. ensure that the finance arrangement was made when you bought or leased your Toyota Corolla.
If you believe your Toyota Corolla finance agreement may have been mis-sold, you can complain directly to your lender without needing a
claims management company. Common lenders for Toyota vehicles include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
The process typically involves writing to your lender with detailed information about the issue, including dates, amounts involved, and any relevant documentation. You can also seek assistance from a legal advisor or solicitor if you require further guidance, but handling complaints directly with your lender is often straightforward and free of charge.
You do not need a claims management company to file a complaint; the
Financial Ombudsman Service (
FOS) provides a free and impartial service for resolving disputes between consumers and financial services providers. The FOS can review your case if you are unsatisfied with your lender's response or if they fail to respond within eight weeks.
Sources and References
- Financial Conduct Authority (2024)
- Office of National Statistics Census 2021
Based on 77,634 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Toyota Corolla has a pass rate of 78.1%. This is close to the national average of 79.6%, meaning the Corolla performs about average in MOT testing.
The Corolla pass rate is slightly below the overall Toyota average of 82.8%. The average mileage at MOT for this model is 96,972 miles.
- MOT pass rate: 78.1%
- MOT failure rate: 21.9%
- Tests analysed: 77,634 (2024 DVSA data)
- Average mileage at test: 96,972 miles
- Toyota average pass rate: 82.8%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.