Mercedes-Benz driver panics as new car catches fire

A wailing and inconsolable Mercedes-Benz driver has filmed his newly-purchased luxury car burn to the ground on a US highway.

Portland man Gabriel Lopes had only owned the 2015 model Mercedes C300 for a week when it "turned itself off" and smoke started to pour out of the engine bay.

“This is a new car, how is that supposed to happen?" he wails as the thick smoke turns into orange flames.

Meanwhile his passenger, a female friend, can be heard trying to comfort the panicking Mr Lopes.

"Relax, it's okay," she says as he screams in anguish.

Eventually the car explodes while the two watch from a safe distance.

"Seeing your brand-new car blow up in front of you in less than nine minutes is horrific," Mr Lopes said in an interview with OregonLive.

Mr Lopes said his car was a former loaner and had about 21,000km on the odometer when it exploded on the side of the road.

Mercedes-Benz is investigating the cause of the incident.