The Volkswagen Up, a popular city car known for its affordability and practicality, 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. The FCA found that many Volkswagen Up owners who financed their cars through PCP or HP may have been affected by mis-selling practices involving
discretionary commission arrangements.
How the Volkswagen Up was Typically Financed
During the specified period, a typical Volkswagen Up would often be financed under a Personal Contract Purchase (PCP) agreement with terms ranging from 36 to 48 months and finance amounts typically between £15,000-£30,000. PCP agreements for the Volkswagen Up were commonly provided by lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These lenders often included balloon payments in the agreement terms, which represent a final lump sum payment due at the end of the contract.
Hire Purchase (HP) agreements for the Volkswagen Up were also prevalent during this period, with similar finance amounts and loan durations. HP agreements typically allow borrowers to own the vehicle outright upon completion of all payments without any balloon payment obligations.
The FCA Motor Finance Investigation
The FCA investigation uncovered widespread mis-selling practices involving discretionary commission arrangements in motor finance agreements from 6 April 2007 to 1 November 2024. These practices allowed lenders and brokers to earn additional fees based on the specific terms of a customer’s agreement, potentially leading to higher interest rates or other costs that were not transparently disclosed to consumers.
The investigation found that 12.1 million eligible agreements (FCA, March 2026) across various makes and models, including the Volkswagen Up, may have been affected by these practices. The total value of mis-sold agreements was estimated at £7.5 billion (FCA, March 2026), with an FCA-estimated average of £829 per eligible agreement.
If you suspect that your Volkswagen Up finance agreement was mis-sold due to discretionary commission arrangements, you can complain directly to your lender at no cost. Common lenders for the Volkswagen Up during this period include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When lodging a complaint, ensure that you provide all relevant documentation and clearly outline why you believe the agreement was mis-sold. You do not need to use a
claims management company; your lender is required by law to address your concerns free of charge.
Sources and References
- Financial Conduct Authority (FCA). "PCP Motor Finance: Mis-selling Practices Investigation." 2024.
- Office for National Statistics Census Data, UK. 2021.
Based on 113,152 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Volkswagen Up has a pass rate of 85.9%. This is above the national average of 79.6%, meaning the Up performs well in MOT testing.
The Up pass rate is better than the overall Volkswagen average of 80.1%. The average mileage at MOT for this model is 48,966 miles.
- MOT pass rate: 85.9%
- MOT failure rate: 14.1%
- Tests analysed: 113,152 (2024 DVSA data)
- Average mileage at test: 48,966 miles
- Volkswagen average pass rate: 80.1%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.