Mercedes-Benz has officially closed and sold off all its manufacturer-owned UK dealerships as part of a strategic global shift, impacting how cars are bought and serviced across the country. This move is linked to years of financial losses, a switch to the agency sales model, and a realignment of operations with franchise partners like Sytner and Lookers. While Mercedes-Benz is not exiting the UK market, the way you interact with the brand is changing significantly.
Key Takeaways:
- Mercedes-Benz Retail Group ceased UK trading by 2025 after heavy losses.
- Major dealership closures across London and regional towns.
- Mercedes now operates through select franchise partners like Sytner.
- Agency model replaces traditional car sales and pricing methods.
- Customers must now use remaining authorised service and sales centres.
Why Did Mercedes-Benz Close Its UK Dealerships?
Mercedes-Benz made the decision to exit its direct retail operations in the UK through its manufacturer-owned Mercedes-Benz Retail Group due to continued financial strain and strategic restructuring. After incurring substantial losses, including £35 million in 2019 and £20.9 million in 2020, the brand began gradually offloading its UK assets and dealerships.
The group’s annual filings and director statements confirmed the cessation of trading and movement toward a dormant business status by 2025.
This shift forms part of a wider global initiative by Mercedes-Benz to reduce its physical dealership network, enhance profitability, and move toward a direct-to-customer agency model. According to internal reports and competitor statements, the brand aims to eliminate up to 20% of its German dealerships and 10% of its global locations by 2025.
By closing underperforming sites and partnering with leading franchise operators, the company intends to streamline its sales and service infrastructure while maintaining brand presence in key UK areas.
Which Mercedes-Benz Dealerships in the UK Have Closed So Far?
Over the past five years, Mercedes-Benz has systematically closed or sold a substantial portion of its dealership network across the UK. This included both long-standing and regional outlets, reshaping the retail experience for customers and partners.
The closure wave began with three significant locations in London, Bromley, Caterham, and Chelsea, which shut down in 2020 as part of a wider realignment strategy.
In North London, five dealerships including Colindale, Loughton, Stratford, Temple Fortune, and Watford were transferred to Sytner Group in 2022. Other major changes included the sale of the Hemel Hempstead site to L&L Automotive and the Epsom dealership to Sandown Motors in 2021.
Regionally, the 70-year-old Bradford dealership, once the UK’s first distributor of Mercedes vehicles, closed in late 2024. Additional closures include South Lakes (Cumbria), Weston-super-Mare, and Walsall.
Location Status Transferred To
Bromley, Caterham, Chelsea Closed (2020) N/A
Colindale, Loughton, Stratford, Temple Fortune, Watford Transferred (2022) Sytner Group
Hemel Hempstead Sold (2021) L&L Automotive
Epsom Sold (2021) Sandown Motors
Bradford Closed (2024) None
South Lakes, Cumbria Closed (2025) Customers redirected
Weston-super-Mare Closed N/A
Walsall Closed Services moved to Wolverhampton
These closures represent the most dramatic shift in the brand’s UK presence in decades, with customers now required to rely on remaining franchise locations for access to vehicles and support services.
What Is the Mercedes-Benz Agency Model and How Does It Work?
The Mercedes-Benz agency model marks a pivotal change in how the brand sells cars in the UK. Unlike the traditional dealership format where dealers set pricing and manage inventory, the agency model puts the manufacturer in control of both. This means all pricing is standardised, and vehicles are technically owned and sold by Mercedes-Benz, not the dealer.
Under this setup, franchise partners act more like delivery and service agents than independent sellers. They receive a commission for each vehicle sold but have limited input on pricing strategies. The goal is to offer customers a uniform, transparent pricing experience, whether they’re purchasing online or in person.
This approach also supports Mercedes-Benz’s digital sales platforms and aligns with modern car-buying trends. It reduces operational costs, streamlines the sales journey, and maintains tighter brand control. For UK customers, this could mean less room for negotiation but a more consistent experience across all locations.
Who Now Operates Mercedes-Benz Sales in the UK?
Following the closure of its manufacturer-owned outlets, Mercedes-Benz now relies on a network of authorised franchise partners to handle vehicle sales and aftersales in the UK. This shift has seen significant changes in dealership ownership and the emergence of new customer service pathways.
Role of Sytner Group, Sandown Motors, Lookers, and Marshall
Sytner Group has emerged as a major player in the brand’s revised retail strategy. It took over five key dealerships in North London, including Colindale, Watford, and Stratford, during 2022, making it the largest Mercedes-Benz retail partner in the UK with 14 franchised locations. Sytner also runs aftersales operations in Heathrow, Wandsworth, and Stratford.
Sandown Motors acquired the Epsom dealership, extending its footprint in South East England. L&L Automotive took over the Hemel Hempstead site, while Lookers continues to operate various Mercedes-Benz dealerships, albeit with recent closures such as Walsall, redirecting operations to Wolverhampton.
Marshall Motor Group previously operated multiple Mercedes-Benz outlets, but their South Lakes (Cumbria) dealership was closed in early 2025, with customer operations moved to nearby branches.
Which Dealerships Were Sold or Transferred?
Mercedes-Benz Retail Group began divesting its locations as early as 2020. The key transfers included:
- Hemel Hempstead to L&L Automotive in July 2021
- Epsom to Sandown Motors in late 2021
- North London (5 locations) to Sytner Group in 2022
Each of these sales involved both vehicle showrooms and aftersales support centres, helping to maintain continuity for customers despite ownership changes.
Mercedes-Benz World and Remaining Sites
Despite widespread closures, Mercedes-Benz retains direct control over a few key locations. Mercedes-Benz World in Weybridge remains operational, serving as both a brand experience centre and training hub. Other remaining manufacturer-involved sites include Croydon, Dartford, and West Bromley, providing access to services and limited sales.
These existing touchpoints, along with the expanded franchise network, ensure continued brand visibility and support, albeit in a more consolidated form.
How Does This Closure Impact You as a Car Buyer?
If you’re planning to purchase or service a Mercedes-Benz vehicle in 2026, you’ll need to adjust to a new dealership landscape. The closure of manufacturer-owned sites and transition to an agency model means your experience will differ from previous years.
- You will now buy directly from Mercedes-Benz via authorised agents, not from independently pricing dealers.
- All pricing is fixed by Mercedes-Benz, ensuring consistency across locations and platforms.
- Negotiations and personalised deals may be limited under the agency model.
- You’ll be directed to the nearest available franchised dealership for service, sales, or warranty support.
Although the change may reduce the number of available dealerships, it ensures a more streamlined and predictable process for buyers across the UK. Expect to rely more on online tools and service locators when planning your next visit.
Will Car Prices and Offers Be Affected by the Agency Model?
Yes, the move to the agency model has changed how pricing works across the Mercedes-Benz network in the UK. Under this new system, all prices are centrally set by the manufacturer and apply equally across online and physical showrooms.
- Discount negotiations are largely removed, creating a more transparent pricing structure.
- Franchise dealers are no longer incentivised to undercut or compete on price.
- Promotional offers may be limited and centrally approved by Mercedes-Benz.
- Customers benefit from a more uniform and simplified car-buying experience.
While this model eliminates price haggling, it may disappoint buyers used to securing deals at the dealership level. However, it also ensures fairness and consistency for everyone.
What’s Next for the UK Luxury Car Market After These Closures?
The UK luxury car market is undergoing a major shift, with Mercedes-Benz leading the transition toward digital-first, agency-based sales models. This move reflects changing consumer expectations and the global trend toward online car shopping and streamlined services.
Other premium brands are likely to follow suit, especially as car makers look to improve efficiency and maintain direct relationships with buyers. The closure of historic sites such as Bradford signals a move away from legacy dealership models in favour of modern, consolidated sales hubs.
In the long run, UK customers may see fewer physical showrooms but more digital convenience. Service centres will remain important, but sales journeys will increasingly begin and sometimes end online.
Where Can You Find a Mercedes-Benz Dealership in 2026?
In 2026, Mercedes-Benz customers in the UK will need to rely on a network of authorised franchise dealers and official service centres. The manufacturer’s own dealer locator remains the best way to find nearby support.
- Use the official Mercedes-Benz Dealer Locator Tool to search by postcode.
- Visit key partner groups like Sytner, Sandown, and Lookers for regional options.
- For aftersales, many former Mercedes-Benz Retail Group sites still offer services under new ownership.
- Mercedes-Benz World in Weybridge and locations like Croydon and Dartford remain operational.
Always confirm with your local dealer regarding available services, especially for warranty and repair requests. Although the retail landscape has changed, a solid network still supports Mercedes-Benz customers nationwide.
Conclusion
The closure of Mercedes-Benz’s UK dealerships marks a significant transformation in how the brand operates, sells, and services its vehicles. While the manufacturer has exited direct retail, it remains firmly present in the UK through its authorised partners.
By embracing the agency model, Mercedes-Benz aims to offer greater transparency, brand control, and efficiency. For you as a customer, this means adapting to fewer physical locations, a more digital buying experience, and a network of franchised partners rather than company-owned showrooms. The shift might seem disruptive, but it aligns with the future of the automotive industry.
Frequently Asked Questions
What caused Mercedes-Benz to close its UK dealerships?
Years of financial losses and a global shift to the agency sales model led to the closure of all manufacturer-owned UK dealerships.
Is Mercedes-Benz leaving the UK market completely?
No, Mercedes-Benz continues to operate in the UK through authorised franchise dealers and service centres.
Can I still get my car serviced at a former dealership?
Yes, many sites have been transferred to new operators who continue offering authorised servicing.
What does the agency model mean for car buyers?
It means you’ll buy directly from Mercedes-Benz with fixed pricing and consistent offers across all platforms.
Are all Mercedes-Benz dealerships in London closed?
No, while some were closed or sold, several key sites like Croydon and Dartford remain operational.
Will the closures affect vehicle warranties?
No, warranties remain valid and can be serviced at any authorised dealership or service centre.
Where can I buy a new Mercedes-Benz now in the UK?
You can purchase from authorised agents like Sytner or Sandown, or through Mercedes-Benz’s online platform.
