The Mercedes-Benz EQA, an all-electric SUV model introduced to the UK market in 2021, was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period from 6 April 2007 to 1 November 2024. This article explores how the Mercedes-Benz EQA financing typically occurred, the implications of the FCA's motor finance investigation on such agreements, and the steps you can take if your agreement was affected by mis-selling practices.
How the Mercedes-Benz EQA Was Typically Financed
The Mercedes-Benz EQA is often financed through Personal Contract Purchase (PCP) or Hire Purchase (HP) arrangements. PCP financing for a new EQA typically involves an initial deposit, monthly payments over 36 to 48 months, and a final balloon payment at the end of the agreement that covers the vehicle’s predicted residual value. For a Mercedes-Benz EQA with a typical finance amount ranging from £15,000 to £30,000, common lenders include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
In PCP agreements for the EQA, the balloon payment is a significant component that customers must pay or choose to refinance at the end of their term. This final payment can be as high as 30% of the original loan amount, depending on the vehicle’s condition and market value. some finance providers may offer options such as returning the car if it no longer meets your needs.
The FCA Motor Finance Investigation
The FCA launched an investigation into motor finance practices that included
discretionary commission arrangements. These arrangements allowed lenders to provide sales incentives to dealerships based on the type of financing chosen by customers for their new cars, including models like the Mercedes-Benz EQA. During the period under review (6 April 2007 to 1 November 2024), it was estimated that 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA, March 2026) and an average refund amount per customer of £829 (FCA estimate).
Discretionary commissions incentivised dealers to recommend certain finance products over others, potentially leading customers into more expensive deals than they might otherwise have chosen. The FCA’s investigation sought to uncover whether these practices resulted in mis-selling, which could have affected the financing terms for the Mercedes-Benz EQA.
How to Check Your Agreement First, check the documentation for your finance agreement to see if it includes a section detailing discretionary commission arrangements. Look out for terms like “Discretionary Contribution Agreement” (DCA) and ensure you understand how these relate to your monthly payments.
Relevant dates are crucial: agreements made before 6 April 2007 or after 1 November 2024 would not fall under the FCA’s investigation period. If you believe your agreement may have been affected by mis-selling practices, it is important to review your contract documentation closely and seek professional advice if necessary.
If you suspect that your Mercedes-Benz EQA finance agreement was part of a mis-sold deal due to discretionary commission arrangements, you can complain directly to your lender at no cost. Common lenders for the EQA include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When making contact with your lender, ensure that you provide detailed information about your finance agreement and any evidence of mis-selling or unfair practices. It is essential to maintain thorough records throughout this process, as it may be necessary for future reference should the matter escalate to the
Financial Ombudsman Service (
FOS).
You do not need a
claims management company; the FCA investigation provides a framework within which you can seek redress directly from your lender without incurring additional fees or costs. This approach ensures transparency and efficiency in addressing any concerns you may have about your finance agreement.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance Discretionary Commission Arrangements." (2024)
- Financial Ombudsman Service (FOS). "Complaints About Motor Finance Agreements." (2024)
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.