BMW facing £600m hit from car mis-selling scandal

BMW faces a bill of more than £600 million from the UK motor finance mis-selling scandal, according to newly filed accounts. BMW’s British finance arm increased its provision for mis-selling claims from £206 million in 2024 to £612 million in 2025. The figure is higher than what some rival lenders have set aside, including Barclays’ expected £430 million and Close Brothers’ £320 million, though it remains far below the worst-hit lender, Lloyds Banking Group, provisioned at £1.95 billion. The FCA’s March redress scheme covers about 12.1 million historic car loans, with average compensation around £830, but it is facing legal challenges that could delay payouts beyond 2027.