The Volvo V40 was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority (FCA) investigation period, which spanned from 6 April 2007 to 1 November 2024. During this time, many consumers who financed their V40 through these arrangements may have been affected by motor finance mis-selling practices involving
discretionary commission arrangements.
## How the Volvo V40 was Typically Financed
The typical financing arrangement for a new or used Volvo V40 during the investigation period often involved Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, with finance amounts ranging from £15,000 to £30,000. The most common PCP terms were 36 to 48 months, allowing customers to manage their monthly payments within a budget while retaining the option to return the vehicle at the end of the agreement or pay the remaining balloon payment to own it outright.
Several finance companies commonly provided financing for Volvo V40s during this period. These include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. Each lender had its unique terms and conditions but often included similar elements such as interest rates, option to purchase (OP) fees, and final balloon payments.
## The FCA Motor Finance Investigation
The FCA investigation uncovered that many motor finance agreements were mis-sold due to discretionary commission arrangements between lenders and car dealerships. These arrangements allowed dealers to receive additional commissions if the customer opted for a more expensive finance deal than initially discussed. 12.1 million eligible agreements (FCA, March 2026) across various makes and models were affected during this period, resulting in an estimated £7.5 billion (FCA, March 2026) total mis-selling (FCA estimate), with the average amount of overpayment being approximately £829 (FCA estimate).
## How to Check Your Agreement Look out for discretionary commission arrangements or inflated interest rates that might indicate the dealer received additional incentives for steering you towards a more expensive deal.
Relevant dates to consider are from 6 April 2007 up to 1 November 2024, which align with the FCA investigation period. Key terms such as "discretionary commission" or "DCA" (Discretionary
Commission Arrangement) should be noted and highlighted for further scrutiny.
## How to
Complain Directly to Your Lender for Free
If you suspect that your Volvo V40 finance agreement was affected by motor finance mis-selling, you can complain directly to the lender without needing a
claims management company. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance have dedicated departments for handling complaints.
When initiating a complaint, clearly outline your concerns regarding any potential mis-selling practices. Provide relevant documentation supporting your claim, including finance agreement documents, communications with the dealership, and any evidence of overpayment or inflated interest rates. You do not need to engage a claims management company; you can handle the process yourself at no cost.
## Sources and References
- Financial Conduct Authority (FCA). (2024). "Motor Finance Investigation." [Available at: https://www.fca.org.uk/]
- Office for National Statistics (ONS) Census 2021.
Based on 93,408 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Volvo V40 has a pass rate of 80.2%. This is close to the national average of 79.6%, meaning the V40 performs about average in MOT testing.
The V40 pass rate is in line with the overall Volvo average of 81.3%. The average mileage at MOT for this model is 72,789 miles.
- MOT pass rate: 80.2%
- MOT failure rate: 19.8%
- Tests analysed: 93,408 (2024 DVSA data)
- Average mileage at test: 72,789 miles
- Volvo average pass rate: 81.3%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.