What success can look like

The Ombudsman’s decision in Mr M’s complaint against Mercedes‑Benz Financial Services UK Limited (DRN-3400917) shows how rejection can be directed where a high‑value car proves insufficiently durable. Mr M bought a new Mercedes in July 2019 for £42,000.

Around 18 months and 37,552 miles later a coolant system fault took the car off the road for roughly eight months. Shortly after it was returned, the oil warning light came on and further work was needed. Given the long loss of use and durability concerns, the Ombudsman upheld the complaint and directed rejection.

Key outcomes

• Complaint upheld; rejection directed.

• End the agreement with nothing further to pay.

• Refund any deposit (if paid) and pay back monthly instalments for periods Mr M couldn’t use the car (from 21 March 2021), plus 8% simple annual interest on refunded sums until settlement.

• Remove the agreement from Mr M’s credit file.

• Pay the previously offered £250 for inconvenience (dealer also offered £1,000 separately).

• HMRC: provide a tax deduction certificate if tax is withheld from interest, on request.

This case shows that when a single repair doesn’t resolve matters and a car isn’t sufficiently durable, the Ombudsman may unwind the finance and put the consumer back in the position as if the car hadn’t been kept during the loss‑of‑use period.

Introduction: When Is Rejection the Right Option?

Many Mercedes owners enjoy years of reliable motoring, but some face repeated faults soon after purchase. If you're dealing with persistent problems, you may be considering whether you can reject the car. This guide explains your rights and the steps to take.

Step 1: Know Your Rights – Consumer Rights Act 2015 and Warranty

Under the Consumer Rights Act 2015, goods must be of satisfactory quality, fit for purpose, and as described.

• Within 30 days: the short-term right to reject and receive a full refund.

• After 30 days: the right to a repair or replacement; if unsuccessful or faults recur, the right to a final remedy (price reduction or rejection).

Manufacturer warranty typically runs alongside your statutory rights (terms vary by model and year). Warranty exclusions commonly include wear and tear, neglect, unauthorised modifications, and consequential loss.

Step 2: Identify and Document Faults

Common categories:

• Electrical/software (warnings, infotainment glitches, battery/charging issues)

• Mechanical (engine/gearbox/drivetrain, cooling, suspension, emissions/AdBlue where applicable)

• Body/interior (water ingress, rattles, fit/finish)

Brand-specific examples from FOS decisions:

• Coolant system failure around 18 months/37,552 miles leading to an extended off‑road period (DRN-3400917).

• Oil warning light illuminated shortly after repair, requiring further workshop investigation (DRN-3400917).

Action: keep a dated log, photos/videos, diagnostic/repair reports, and all correspondence with the retailer and finance company.

Step 3: Communicate Clearly – Template Letter

Subject: Request for Vehicle Rejection/Replacement – [Your Vehicle Model, Registration Number]

Dear [Dealer Principal's Name],

I am writing regarding my [Mercedes Model], purchased from [Retailer Name] on [Date]. Since delivery, I have experienced repeated faults including [list main issues, e.g. electrical failures, drivetrain faults, water ingress]. These have not been resolved despite multiple repair attempts.

Under the Consumer Rights Act 2015, I am entitled to a vehicle that is of satisfactory quality, fit for purpose, and as described. As the faults are persistent and have not been rectified, I am requesting [a replacement vehicle/a full refund]. Please confirm the process for returning my vehicle and arranging [a replacement/refund].

I have attached a log of faults, photos, and copies of correspondence. I look forward to your response within 14 days.

Yours sincerely,
[Your Name]
[Contact Details]

Step 4: Dealer, Manufacturer, and Finance Company – Who to Contact

• If bought on PCP/HP, the finance company is often the legal owner; involve them early.

• Your contract is with the retailer; keep them in the loop and escalate if needed.

• If ignored, escalate to the manufacturer’s customer relations.

Step 5: What to Expect – Refunds, Replacements, and Mileage Deductions

• Within 30 days: generally a full refund when rejection is valid.

• After 30 days: repair/replacement or partial refund (businesses may deduct for fair use/mileage; negotiable where faults are severe or the car was unusable).

• Where decisions unwind finance agreements, typical remedies include refunding sums paid and applying 8% simple interest on refunds (per FOS discretion).

Step 6: Overcoming Obstacles

If progress stalls, escalate in writing, reference evidence and your statutory rights, and set clear timelines. Persistence matters.

Step 7: Negotiation Tips

• Use your fault log and evidence to demonstrate inconvenience and repeat failures.

• Ask for mileage deductions to be waived if the car was unusable.

• If a replacement is offered, scrutinise the finance terms.

Step 8: Real Examples (from FOS decision)

This article draws on the following FOS decision involving Mercedes:

• DRN-3400917

Major Mercedes Retailers (UK)

• Mercedes‑Benz Retail Group

• Inchcape Mercedes‑Benz

• Lookers Mercedes‑Benz

• LSH Auto Mercedes‑Benz

• Jardine Mercedes‑Benz

• Vertu Mercedes‑Benz

• Sandown Mercedes‑Benz

Common Mercedes Models (UK)

• A‑Class

• C‑Class

• E‑Class

• S‑Class

• GLA

• GLC

• GLE

• EQC

• EQE

• EQS

Conclusion: Stay Persistent and Informed

You don't have to accept a car that isn't right. With clear evidence and knowledge of your rights, you can achieve a fair outcome. Keep thorough records and escalate in writing.

Disclaimer: This article provides general information for educational purposes only. It is not legal advice. Outcomes can vary based on your personal circumstances.