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If the radio serial number matches what is on the computer display at the dealership (the "VMI" report), then you're in deep doo-doo. Did they give you a copy of the VMI, or just going by word of mouth at the dealer?
If you are going by word of mouth, you can try talking to someone at MB about it. Be sure you know, with your own eyes, what the correct serial number is on the radio, no guessing or hoping it's right.
Call MB at the 1 800 FOR MERCedes number.
If the radio serial number matches what they have on VMI, you need to ask them if the warranty department can research the radio code, as you have verified the serial number on VMI is correct, but the radio won't accept the code. Sometimes MB gets the wrong info on the radio from the radio manufacturer, but they can usually go back to them and they will straighten it out.
I would still insist that the previous owner may be able to help. Have you looked through the papers in the car yet?
Gilly
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