The Volvo XC60 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 identified that a significant number of motor finance agreements, including those for high-end vehicles like the XC60, may have been mis-sold due to
discretionary commission arrangements between lenders and car dealerships.
How the Volvo XC60 was Typically Financed
The Volvo XC60 is a popular mid-size luxury SUV known for its Scandinavian design and advanced safety features. During the FCA investigation period, many XC60 buyers opted for PCP or HP finance agreements to manage their monthly outgoings while enjoying the benefits of owning a new vehicle. Common financing terms ranged from £15,000 to £30,000 over 36 to 48 months.
Several lenders commonly provided finance for XC60 purchases during this period, including
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. Under PCP agreements, a balloon payment is typically required at the end of the term if you choose to keep the vehicle or trade it in for another model.
The FCA Motor Finance Investigation
The FCA launched an investigation into motor finance mis-selling following concerns about discretionary commission arrangements between lenders and car dealerships. These arrangements allowed dealers to receive payments based on how many agreements they sold, potentially leading to sales pressure and mis-selling practices. As a result, the FCA found that 12.1 million eligible agreements (FCA, March 2026) by these issues (FCA estimate), with an estimated total of £7.5 billion (FCA, March 2026) in mis-sold finance agreements (FCA estimate) and an average of £829 per agreement (FCA estimate).
How to Check Your Agreement Look for terms such as "discretionary commission," "DCA" (Discretionary Commission Arrangement), or any mention of additional payments made to the dealership by the lender. These agreements were often in place between 6 April 2007 and 1 November 2024, when the FCA’s investigation into motor finance mis-selling was active.
If you believe your Volvo XC60 finance agreement may have been affected by discretionary commission arrangements, it is important to contact your lender directly. Common lenders for XC60s include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These lenders are required to address any concerns you may have about the fairness of your agreement.
You do not need a
claims management company to help you with this process; many individuals successfully complain directly to their lender for free. Provide them with detailed information regarding your purchase, including dates, amounts involved, and any evidence suggesting mis-selling practices. Your lender should respond promptly and offer guidance on how to proceed if issues are identified.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance Mis-selling: Investigation Findings." FCA estimate.
- Financial Ombudsman Service (FOS), Complaints Data.
Based on 96,045 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Volvo Xc60 has a pass rate of 83.6%. This is above the national average of 79.6%, meaning the Xc60 performs well in MOT testing.
The Xc60 pass rate is better than the overall Volvo average of 81.3%. The average mileage at MOT for this model is 87,411 miles.
- MOT pass rate: 83.6%
- MOT failure rate: 16.4%
- Tests analysed: 96,045 (2024 DVSA data)
- Average mileage at test: 87,411 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.