The Toyota RAV4 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. This investigation scrutinised the
discretionary commission arrangements that were prevalent in the motor finance industry, affecting millions of consumers across the UK.
How the Toyota RAV4 was Typically Financed
The Toyota RAV4, a popular mid-size SUV, was often financed through PCP agreements ranging from £15,000 to £30,000. Common lenders for Toyota vehicles included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These agreements typically spanned 36 to 48 months, with a balloon payment due at the end of the term if the consumer chose not to purchase or refinance the vehicle.
PCP finance often includes an estimated future value (EFV) of the car at the end of the agreement period. This EFV serves as the final balloon payment that needs to be settled if you decide to return the RAV4 instead of buying it outright. The EFV is a critical component of the PCP calculation and can significantly affect the overall cost of financing.
The FCA Motor Finance Investigation
The FCA investigation uncovered widespread issues related to discretionary commission arrangements in motor finance agreements. These arrangements allowed lenders and dealerships to offer incentives that could lead to inflated costs for consumers, affecting 12.1 million eligible agreements (FCA, March 2026) across various car brands, including the Toyota RAV4. The total financial impact of these arrangements was estimated at £7.5 billion (FCA, March 2026) (FCA, March 2026).
The investigation highlighted that discretionary commissions could lead to higher finance charges and other hidden costs that consumers might not be aware of when they sign their agreements.
How to Check Your Agreement Look for any references to discretionary commission arrangements or excessive fees and charges that were not clearly disclosed at the time of purchase.
Relevant dates are crucial: agreements signed between 6 April 2007 and 1 November 2024 fall under the scope of the FCA investigation. If your agreement mentions "Discretionary Commission Arrangements" (DCA) or similar terms, there is a possibility that you were affected by the issues highlighted in the investigation.
If you believe your Toyota RAV4 finance agreement was mis-sold under discretionary commission arrangements, you can complain directly to your lender at no cost. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance have dedicated teams to handle complaints related to motor finance agreements.
When submitting a complaint, gather all relevant documentation including your original finance agreement, payment receipts, and any correspondence with the lender or dealership. Provide clear evidence of how you were affected by discretionary commissions and other hidden costs.
You do not need a
claims management company to file a complaint. The FCA encourages consumers to address issues directly with their lenders first before considering external assistance. This approach can often lead to faster resolution and better outcomes without additional fees.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance Investigation." 2024.
- Office for National Statistics (ONS). Census data, 2021.
Based on 91,532 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Toyota Rav4 has a pass rate of 85.6%. This is above the national average of 79.6%, meaning the Rav4 performs well in MOT testing.
The Rav4 pass rate is better than the overall Toyota average of 82.8%. The average mileage at MOT for this model is 74,613 miles.
- MOT pass rate: 85.6%
- MOT failure rate: 14.4%
- Tests analysed: 91,532 (2024 DVSA data)
- Average mileage at test: 74,613 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.