It's not a stupid question. A CAT-D is a car that is damaged but the cost to repair is less than the value of the car. The OP was suggesting that it was CAT-C where the cost to repair is greater than the value hence the desire to write off. It's just that Mercedes Finance know that even at CAT-D the vehicle's value will be negatively impacted so they'd rather get rid of it.

Daughters own Insurer now stepped in and have taken over claim- the 3rd parties insurer have in writing apologised for misleading my daughter and saying they would cover any shortfall and have offered £100 compo- but I will be going to regulator as very 'devious' how they work- must catch a high number of people out
thanks for all your good advice- it helped 2011 XS,Sumatra Black, GONE MARCH 2014- RR Evoque Prestige 5 door ,MY 2014,Loire Blue, Silver Roof, Panoramic roof.
MY 2016 Disco Sport HSE Auto Scotia Grey,REJECTED
Mercedes E220D AMG line with air suspension(Gone)
DS 200 SE Dynamic my 21 (Gone)
DS 200 SE Dynamic my 22 (Gone)
Audi Q5 40TDI S line (gone)
Discovery Sport D200 S 2024 MY