The Daily Mail says a picture of Terry's £150,000 Bentley parked in a disabled bay in Esher, Surrey, last week counted against him in the final reckoning.
England boss Fabio Capello said: "A captain must be an example to follow in training and a leader during the game. I would also hope he would be an example, a role model, outside the game and in life.
"That's very important. Not just for the England captain, but for everything we, as sportsmen, show youngsters. I wasn't put under any pressure (by the FA) and all the decisions I have made - technical or otherwise - have been my own decisions.
"We need to be role models when we play for England and when we play for our clubs. Part of this involves fair play and respect towards the referee and the public who come to see the games. In that respect, we need to get back something we may be losing a bit. They are my choices. I've got my own eyes, I can see things and I can understand things for myself.
"I will have a permanent captain from August 20. Until then, John Terry has a chance to become England captain."