The Volvo XC40 Recharge 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 PCP and HP agreements, including those for the XC40 Recharge, were affected by
discretionary commission arrangements between car dealerships and finance providers. This resulted in an estimated 12.1 million eligible agreements (FCA, March 2026) being impacted (FCA estimate), with a total of £7.5 billion (FCA, March 2026) involved and an FCA-estimated scheme average per eligible agreement: £829 (FCA estimate).
How the Volvo XC40 Recharge was Typically Financed
The Volvo XC40 Recharge, like many other vehicles, was often sold through PCP finance agreements that allowed customers to make lower monthly payments with a lump sum payment at the end of the term. The typical finance amount for an XC40 Recharge ranged from £15,000 to £30,000 (FCA estimate), with common terms ranging from 36 to 48 months. Balloon payments were often required in PCP agreements, which meant that customers had to pay a significant portion of the remaining balance at the end of their finance term.
Common lenders for Volvo cars include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These lenders would typically offer financing options based on the customer's credit score and financial history, allowing them to drive away in a new XC40 Recharge with manageable monthly payments.
The FCA Motor Finance Investigation
The FCA investigation uncovered that some car dealerships were receiving discretionary commission arrangements from finance providers when they sold vehicles like the Volvo XC40 Recharge. These commissions could incentivise dealers to push customers towards more expensive finance options, such as higher interest rates or longer terms, which benefited the dealership but not necessarily the customer.
The FCA found that 12.1 million eligible agreements (FCA, March 2026) by these arrangements (FCA estimate), involving a total of £7.5 billion (FCA, March 2026) in mis-selling claims (FCA estimate) with an average loss per customer estimated at £829 (FCA estimate). This investigation highlighted significant issues with how finance was sold alongside new vehicles, particularly for the XC40 Recharge and other models.
How to Check Your Agreement Look for any mention of "Discretionary Commission Arrangements" (DCA) or similar phrases that indicate a commission structure between the dealership and the lender.
If you entered into a finance agreement during the period from 6 April 2007 to 1 November 2024, your agreement may be eligible for review. Common lenders involved in this investigation include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
If you believe that your Volvo XC40 Recharge finance agreement was mis-sold due to discretionary commission arrangements, you can complain directly to your lender without the need for a
claims management company. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance have procedures in place to handle complaints.
When complaining, provide clear details about why you believe your finance agreement was mis-sold. Include any relevant documentation and reference the FCA investigation period (6 April 2007 to 1 November 2024). You do not need a claims management company; instead, contact your lender directly through their customer service or complaints department.
Sources and References
- Financial Conduct Authority (FCA)
- Office for National Statistics Census 2021
Based on 50,660 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Volvo Xc40 has a pass rate of 91.5%. This is above the national average of 79.6%, meaning the Xc40 performs well in MOT testing.
The Xc40 pass rate is better than the overall Volvo average of 81.3%. The average mileage at MOT for this model is 35,888 miles.
- MOT pass rate: 91.5%
- MOT failure rate: 8.5%
- Tests analysed: 50,660 (2024 DVSA data)
- Average mileage at test: 35,888 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.