The Mercedes-Benz A-Class was 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. This period saw significant scrutiny over motor finance practices in the UK, with a particular focus on the
discretionary commission arrangements that affected many consumers.
How the Mercedes-Benz A-Class was Typically Financed
The Mercedes-Benz A-Class is often financed through PCP and HP agreements, which were commonly offered by lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. The typical finance amount for a new or used Mercedes-Benz A-Class ranges from £15,000 to £30,000, with terms typically lasting 36 to 48 months.
PCP agreements usually include a final balloon payment at the end of the term, which represents the residual value of the car. This can be settled by returning the vehicle, trading it in for another model, or paying off the remaining balance and taking ownership. In contrast, HP agreements typically provide full ownership upon completion without any further payments required.
The FCA Motor Finance Investigation
The FCA launched an investigation into motor finance practices due to concerns about discretionary commission arrangements between lenders and car dealerships. These arrangements allowed dealers to receive additional commissions based on the type of finance agreement chosen by customers, potentially influencing salespeople to recommend more expensive financing options such as PCP over cheaper ones like HP.
During this period, it was estimated that 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA, March 2026). On average, consumers who entered into these arrangements may have paid an extra £829 per agreement compared to what they would have paid if they had chosen the least expensive option available.
How to Check Your Agreement Look for any indications of discretionary commission arrangements or unusual terms that may have influenced your choice of finance package.
Relevant dates to consider are from 6 April 2007 to 1 November 2024. If you notice a clause mentioning "Discretionary
Commission Arrangement" (DCA) in your agreement, this is likely an indication that the arrangement was affected by the FCA investigation.
How to [Complain Directly](https://mlj.org.uk/guides/how-to-complain-to-your-lender) to Your Lender for Free
If you believe your Mercedes-Benz A-Class finance agreement may have been influenced by unfair commission practices during the investigation period, you can complain directly to your lender without the need for a
claims management company. Common lenders for Mercedes-Benz A-Class include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When contacting your lender, provide them with evidence from your finance agreement that suggests an unfair commission arrangement was in place. This could include any clauses mentioning DCAs or unusual terms related to your choice of finance package. You can also seek further advice from the
Financial Ombudsman Service (
FOS) if you are not satisfied with the outcome of your complaint.
You do not need a claims management company to handle this process; it is straightforward and free to complain directly to your lender.
Sources and References
- FCA estimates on motor finance agreements: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion (FCA, March 2026) total (FCA estimate), £829 average per eligible agreement
- Ongoing investigations by the Financial Conduct Authority
- Advice from the Financial Ombudsman Service regarding consumer complaints
Based on 375,769 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Mercedes-Benz C has a pass rate of 81.1%. This is close to the national average of 79.6%, meaning the C performs about average in MOT testing.
The C pass rate is in line with the overall Mercedes-Benz average of 82.3%. The average mileage at MOT for this model is 86,936 miles.
- MOT pass rate: 81.1%
- MOT failure rate: 18.9%
- Tests analysed: 375,769 (2024 DVSA data)
- Average mileage at test: 86,936 miles
- Mercedes-Benz average pass rate: 82.3%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.