Volkswagen vans were commonly 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. The FCA found that
[discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements in motor finance could have led to mis-selling practices affecting millions of customers across the UK.
How Volkswagen Vans Were Financed
Volkswagen vans were often financed through various lenders, including
Black Horse,
Lombard,
Close Brothers Motor Finance, and Hitachi Capital Vehicle Solutions. These agreements typically involved PCP or HP financing structures. In a typical PCP agreement, customers would make monthly payments for the term of the contract and then have the option to purchase the van at its Guaranteed Future Value (GFV) or return it at the end of the contract. Hire Purchase (HP) agreements allowed customers to own the vehicle outright after making all agreed payments.
The FCA Motor Finance Investigation
The FCA investigation uncovered that discretionary commission arrangements, which were common in motor finance between 6 April 2007 and 1 November 2024, may have led to unfair practices. These arrangements allowed lenders and dealers to receive additional compensation for steering customers towards certain products or financial packages, such as PCP agreements over HP options. The FCA found that these practices could result in higher costs for consumers without clear benefits.
The investigation concluded that 12.1 million eligible agreements were potentially affected by these arrangements (FCA estimate). The total sum of mis-sold motor finance agreements is estimated at £7.5 billion, with an average amount of compensation per customer being approximately £829 (FCA estimate).
How to Check Your Agreement If your agreement falls within the period of 6 April 2007 to 1 November 2024, there is a possibility that discretionary commission arrangements were involved in your financing deal.
Key indicators to look for include any evidence that you were encouraged or incentivised to choose a specific finance product over another. If your agreement was made through lenders such as Black Horse, Lombard, Close Brothers Motor Finance, or Hitachi Capital Vehicle Solutions during the specified period, it is advisable to investigate further.
If you suspect that your Volkswagen van financing agreement was affected by discretionary commission arrangements, you can complain directly to your lender at no cost. Common lenders like Black Horse, Lombard, Close Brothers Motor Finance, and Hitachi Capital Vehicle Solutions have processes in place to handle such complaints.
you do not need a
claims management company to assist with this process. You can contact the finance provider’s customer service department or visit their website for information on how to lodge a complaint. Providing clear details about your concerns and any relevant documentation will help streamline the resolution process.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance: Discretionary Commission Arrangements." FCA, 2024.
- Office of National Statistics (ONS) Census 2021.
FCA Compensation: FCA Scheme Figures
The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.
Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.
Across 3,246,732 MOT tests in 2024, Volkswagen vehicles have an overall pass rate of 80.1%. This is close to the national average of 79.6%. DVSA data covers 292 Volkswagen models with sufficient test volume.
- Overall pass rate: 80.1%
- Total MOT tests (2024): 3,246,732
- Models with data: 292
- National average: 79.6%
Best Volkswagen models for MOT pass rate
- Volkswagen Multivan Life Phev S-A: 97.4% pass rate (946 tests)
- Volkswagen T-Roc Sel Tsi Evo: 96.3% pass rate (630 tests)
- Volkswagen T-Roc Se Tsi Evo: 96.2% pass rate (849 tests)
- Volkswagen T-Roc Sel Tsi Evo S-A: 95.7% pass rate (1,963 tests)
- Volkswagen Polo Style Tsi: 95.3% pass rate (706 tests)
Volkswagen models with lowest MOT pass rate
- Volkswagen Lupo: 72.2% pass rate (6,263 tests)
- Volkswagen Bora: 71.8% pass rate (5,813 tests)
- Volkswagen Beetle: 70.8% pass rate (48,318 tests)
- Volkswagen Fox: 68.6% pass rate (31,865 tests)
- Volkswagen Lt: 67.4% pass rate (7,085 tests)
Volkswagen MOT Reliability Trend (2022-2024)
Volkswagen pass rates have remained stable: 80.2% in 2022, 80.0% in 2023, and 80.1% in 2024.
- 2022: 80.2% pass rate (3,526,753 tests)
- 2023: 80.0% pass rate (3,614,373 tests)
- 2024: 80.1% pass rate (3,246,732 tests)
Based on 10,387,858 MOT tests across three years (DVSA open data).
Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.