Volkswagen cars were commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period, which lasted from 6 April 2007 to 1 November 2024. The FCA found that many car dealerships across the UK had engaged in
discretionary commission arrangements with lenders, leading to potential mis-selling of these finance products to unsuspecting consumers.
How Volkswagen Cars Were Financed
Volkswagen cars were often financed through a variety of well-known lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These lenders commonly offered PCP and HP agreements that allowed customers to spread the cost of their new or used Volkswagen over several years with manageable monthly payments.
For instance, under a typical PCP agreement, customers would pay an initial deposit followed by regular monthly instalments for 24 to 60 months. At the end of this period, they could choose to return the car, settle any outstanding finance balance and keep it, or upgrade to another Volkswagen on a new finance deal.
The FCA Motor Finance Investigation
The FCA’s investigation into discretionary commission arrangements revealed that many lenders had paid commissions to dealerships based on the number of finance agreements sold rather than the quality or suitability of those deals. This arrangement incentivised dealers to push high-cost financing options without considering whether they were in the best interest of the customer.
According to the FCA, 12.1 million eligible agreements were affected across the UK (FCA estimate), with a total value of £7.5 billion (FCA estimate). On average, consumers lost about £829 per agreement due to these practices (FCA estimate).
How to Check Your Agreement If this occurred between 6 April 2007 and 1 November 2024, there is a chance your deal may have been affected by discretionary commissions.
Look for any unusual fees or charges that might indicate poor value in your finance agreement. It’s also worth checking if you were pressured into choosing a higher-cost financing option over more affordable alternatives.
If you suspect your Volkswagen car was financed under an affected deal, you can complain directly to the lender without needing to use a
claims management company. The common lenders for Volkswagen cars include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
To start a complaint, gather all relevant documents such as your finance agreement, purchase contract, and any correspondence with the dealership or lender. Contact your lender through their customer service line or website to express your concerns about potential mis-selling due to discretionary commissions.
You do not need a claims management company for this process; you can handle it yourself at no cost by following these steps:
1.
Gather Evidence: Collect all relevant documents.
2.
Contact the Lender: Reach out directly via phone or online form.
3.
Follow Up: Keep detailed records of your communications and follow up as necessary.
Sources and References
- Financial Conduct Authority (FCA). (2024). Summary of FCA investigation into discretionary commission arrangements in motor finance.
- Office for National Statistics (ONS) Census 2021.
FCA Compensation: FCA Scheme Figures
The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.
Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.
Across 3,246,732 MOT tests in 2024, Volkswagen vehicles have an overall pass rate of 80.1%. This is close to the national average of 79.6%. DVSA data covers 292 Volkswagen models with sufficient test volume.
- Overall pass rate: 80.1%
- Total MOT tests (2024): 3,246,732
- Models with data: 292
- National average: 79.6%
Best Volkswagen models for MOT pass rate
- Volkswagen Multivan Life Phev S-A: 97.4% pass rate (946 tests)
- Volkswagen T-Roc Sel Tsi Evo: 96.3% pass rate (630 tests)
- Volkswagen T-Roc Se Tsi Evo: 96.2% pass rate (849 tests)
- Volkswagen T-Roc Sel Tsi Evo S-A: 95.7% pass rate (1,963 tests)
- Volkswagen Polo Style Tsi: 95.3% pass rate (706 tests)
Volkswagen models with lowest MOT pass rate
- Volkswagen Lupo: 72.2% pass rate (6,263 tests)
- Volkswagen Bora: 71.8% pass rate (5,813 tests)
- Volkswagen Beetle: 70.8% pass rate (48,318 tests)
- Volkswagen Fox: 68.6% pass rate (31,865 tests)
- Volkswagen Lt: 67.4% pass rate (7,085 tests)
Volkswagen MOT Reliability Trend (2022-2024)
Volkswagen pass rates have remained stable: 80.2% in 2022, 80.0% in 2023, and 80.1% in 2024.
- 2022: 80.2% pass rate (3,526,753 tests)
- 2023: 80.0% pass rate (3,614,373 tests)
- 2024: 80.1% pass rate (3,246,732 tests)
Based on 10,387,858 MOT tests across three years (DVSA open data).
Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.