The Mercedes-Benz EQB was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the period under investigation by the Financial Conduct Authority (FCA), which spans from 6 April 2007 to 1 November 2024. This investigation has highlighted issues with
discretionary commission arrangements that may have affected many car buyers who financed their vehicles through various lenders.
How the Mercedes-Benz EQB was Typically Financed
The Mercedes-Benz EQB, a popular electric vehicle (EV) model from the German automaker, is often sold under finance agreements such as PCP and HP. Typical financing amounts for this model range between £15,000 to £30,000 with terms usually lasting 36 to 48 months. Common lenders providing finance for Mercedes-Benz vehicles include
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Balloon payments are a key feature of PCP agreements, where the final payment at the end of the term is significantly higher than previous monthly instalments. This balloon payment can be used to part-exchange the vehicle for another model or to pay it off in full if the customer chooses to retain ownership.
The FCA Motor Finance Investigation
The FCA investigation revealed that many finance agreements were affected by discretionary commission arrangements between lenders and car dealerships during the specified period (6 April 2007 to 1 November 2024). These practices led to an estimated £7.5 billion (FCA, March 2026) in overcharges across 12.1 million eligible agreements (FCA, March 2026), with the average customer potentially overcharged by £829 (FCA estimate).
Discretionary commissions were often based on sales targets and could incentivise dealers to recommend finance deals that may not have been in the best interest of consumers. This investigation underscores the importance for car buyers to review their finance agreements carefully to ensure they are fair and transparent.
How to Check Your Agreement Key signs include:
- Discretionary Commission Arrangements (DCA): These arrangements might be mentioned or implied in your finance agreement documents.
- Relevant Dates: Ensure that the date of your finance agreement falls within the investigation period from 6 April 2007 to 1 November 2024.
If you suspect an issue, it is advisable to review your documentation and consult with a financial advisor or contact your lender directly for clarification. The FCA's guidance can also provide additional assistance in understanding whether your agreement was affected.
You do not need to use the services of a
claims management company to address issues related to your finance agreement. Instead, you can complain directly to your lender-such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, or Santander Consumer Finance-for free.
Lenders are required by law to provide fair and transparent practices in their dealings with customers. By contacting them directly, you can seek redress for any unfair treatment without the need for intermediaries who might charge fees.
Sources and References
- Financial Conduct Authority (FCA). "Motor finance investigation." (2024)
- Financial Ombudsman Service (FOS). "Discretionary commission arrangements guidance." (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.