The Toyota Proace City is a popular van model that was frequently sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period, which ran from 6 April 2007 to 1 November 2024. This period saw significant issues with
discretionary commission arrangements in motor finance, affecting 12.1 million eligible agreements (FCA, March 2026) across various vehicle models and brands, including Toyota vehicles like the Proace City.
## How the Toyota Proace City Was Typically Financed
The Toyota Proace City was commonly financed through Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements. PCP terms typically ranged from £20,000 to £45,000 over 36 to 60 months, with a balloon payment often required at the end of the term if the vehicle was not purchased outright or returned. Common finance providers for Toyota vehicles during this period included
Black Horse,
Lombard,
Close Brothers Motor Finance, and Hitachi Capital Vehicle Solutions.
PCP agreements allowed customers to make lower monthly payments compared to HP deals by including a balloon payment due at the end of the agreement. This balloon payment could be settled in cash, or alternatively, the vehicle's residual value would need to be covered if it was returned to the lender. In contrast, HP agreements required higher monthly payments but did not include a final balloon payment.
## The FCA Motor Finance Investigation
The FCA launched an investigation into discretionary commission arrangements in motor finance during the specified period. These arrangements allowed car dealers and brokers to receive additional commissions based on the type of finance agreement chosen by customers. This practice led to misleading sales practices, where advisors might have recommended more expensive financing options that included higher interest rates or unnecessary add-ons.
The FCA found that these discretionary commission payments had a significant impact on consumers, with 12.1 million eligible agreements (FCA, March 2026) being affected (FCA estimate). The total mis-selling of motor finance was estimated at £7.5 billion (FCA, March 2026), with an average cost per customer of approximately £829 (FCA estimate).
## How to Check Your Agreement Key indicators include:
-
Dates: The agreement was made between 6 April 2007 and 1 November 2024.
-
Commission Indicators: Look for any mention of "discretionary commission," "DCA" (Discretionary
Commission Arrangement), or similar terms in your contract.
You should also check if you were offered a PCP agreement with a balloon payment, as this was a common practice during the investigation period. If any of these elements are present, it is likely that your finance agreement was affected by mis-selling practices.
## How to
Complain Directly to Your Lender for Free
If you suspect that your Toyota Proace City's finance agreement is affected, you can complain directly to your lender without incurring additional costs or needing a
claims management company. Common lenders for Toyota vehicles include:
-
Black Horse
-
Lombard
-
Close Brothers Motor Finance
-
Hitachi Capital Vehicle Solutions
When contacting your lender, clearly state that you believe your finance agreement was sold under misleading terms due to discretionary commission arrangements. Provide any documentation or evidence that supports your complaint. Your lender should respond promptly and offer a resolution based on the FCA's findings.
you do not need a claims management company to handle your complaint. You can submit a complaint directly and for free, ensuring transparency and direct communication with your finance provider.
## Sources and References
- Financial Conduct Authority (FCA). (2024).
Motor Finance Investigation: Final Report.
-
Financial Ombudsman Service (
FOS). (2023).
Complaint Handling Guidelines.
Toyota Proace [MOT Pass Rate](https://mlj.org.uk/tools/mot-statistics)
Based on 14,150 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Toyota Proace has a pass rate of 80.8%. This is close to the national average of 79.6%, meaning the Proace performs about average in MOT testing.
The Proace pass rate is in line with the overall Toyota average of 82.8%. The average mileage at MOT for this model is 73,929 miles.
- MOT pass rate: 80.8%
- MOT failure rate: 19.2%
- Tests analysed: 14,150 (2024 DVSA data)
- Average mileage at test: 73,929 miles
- Toyota average pass rate: 82.8%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.