I purchased a 2010 Mercedes E250CDI Sport four-door from a main Mercedes-Benz dealership in Feb 2011. The car had 3500 miles on the clock. It was purchased with the aid of finance from Mercedes-Benz Financial Services UK. The total price was £35,200 with £18,500 provided by MBFS. I had to return the car on several occasions for minor faults but after three months the engine cut out completely when travelling on the motorway. The car was taken in to a local dealership for repair and then failed again. The car has been in the local dealership ever since.

After complaining that I did not want the car back the dealership has offered to buy back the car for £22,000 less financial settlement of £13,256.73 (two further payments have been made at £449), plus compensation for distress of £5100 giving me a total refund of £13,843.27.The finance company is threatening to repossess the car if I stop payments. Do you think this is a reasonable offer or would I be better off accepting a similar replacement vehicle of same age and similar mileage? The car has now done 21,000 miles.