The Mercedes-Benz eCitan, a popular electric van model introduced in 2017, 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 will explore how the Mercedes-Benz eCitan was typically financed, the findings of the FCA’s motor finance investigation, and what affected borrowers can do next.
How the Mercedes-Benz eCitan Was Typically Financed
The Mercedes-Benz eCitan is a versatile electric van that offers low running costs and environmental benefits. During its market presence, it was often sold on finance agreements to make it more accessible for business owners and fleet managers. The typical financing arrangements were Personal Contract Purchase (PCP) or Hire Purchase (HP). PCP terms usually ranged from £20,000 to £45,000 over a period of 36 to 60 months.
Common lenders providing finance options for the Mercedes-Benz eCitan include
Black Horse,
Lombard,
Close Brothers Motor Finance, and Hitachi Capital Vehicle Solutions. These lenders often offered balloon payments at the end of the PCP term, which can be a significant amount that borrowers must settle or refinance to keep the van beyond the initial agreement period.
The FCA Motor Finance Investigation
In its investigation into motor finance agreements, the Financial Conduct Authority (FCA) found that
discretionary commission arrangements played a significant role in mis-selling. These arrangements allowed lenders and dealerships to receive additional payments based on the type of finance chosen by customers, often leading to higher-cost agreements being pushed over lower-cost alternatives.
According to the FCA's estimates, 12.1 million eligible agreements (FCA, March 2026) during the investigation period from 6 April 2007 to 1 November 2024. The total estimated mis-selling amounted to £7.5 billion (FCA, March 2026) (FCA, March 2026).
How to Check Your Agreement Look for any indication that a discretionary commission was paid or if you were offered a PCP with an end-of-term balloon payment. The relevant dates to check are from 6 April 2007 to 1 November 2024.
Another key term to look out for is "Discretionary
Commission Arrangement" (DCA). If your finance agreement includes this term, it is likely that you were part of the FCA investigation's findings and may be covered by the FCA redress scheme.
If you suspect that your Mercedes-Benz eCitan finance agreement was mis-sold due to discretionary commission arrangements, you can complain directly to your lender without needing a
claims management company. Common lenders for the Mercedes-Benz eCitan include:
- Black Horse
- Lombard
- Close Brothers Motor Finance
- Hitachi Capital Vehicle Solutions
When complaining, clearly state that you believe your finance agreement was mis-sold under a discretionary commission arrangement and provide any relevant documentation to support your case. You do not need a claims management company; you can handle the complaint process yourself.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance: Discretionary Commission Arrangements". FCA Publications, 2024.
- Financial Ombudsman Service (FOS). "Guidance for Motor Finance Complaints". FOS Guidance, 2023.
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.