Smart Fortwo PCP.

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Proxy89
Proxy89 Posts: 11 Forumite
edited 20 May 2017 at 4:51PM in Loans
Just want to clear a few things up.

I got a Smart Fortwo (Mercedes finance) on PCP 1 year ago for 3 years total. The numbers are outlined as follows:

Car: £10,878
Interest: £998
Total: £11,876

GMV: £6,485

Amount payable: £149.75 * 36 = £5,391
Amount paid (so far): £149.75 x 11 = £1,647.25
Remaining: £3743.75 (25 months)

So I have £3743.75 left on the finance. Obviously I cannot VT at this point which I would love to (and clearly never during the duration of the entire finance). Is it safe to assume that if I simply pay Mercedes the £3743.75 back I can simply hand this vehicle back this very moment?

What do you guys advise other than to never get a PCP? - My first eve finance product and I regret it deeply.

Comments

  • Nearlyold
    Nearlyold Posts: 2,289 Forumite
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    Why do you want to get rid of the vehicle, is it because you no longer need a car or is it because you don't like the car or is it because you don't like having the finance commitment. Your reason would affect our advice.

    What would the value be if you sold the car?

    If you really want out of the vehicle you need to look at the route that will cost you the least.

    You would have to ask Mercedes if they would take the vehicle back now under your proposal as you would effectively be asking them to give you the GMFV 25 months earlier (when the current value should be higher than at the agreed GMFV point) - it sounds a good deal for them.
  • Proxy89
    Proxy89 Posts: 11 Forumite
    edited 20 May 2017 at 6:28PM
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    It was my first attempt at financing a car as I suppose the excitement got the better of me.

    There are a lot of stipulations in using a financed vehicle in such that you cannot exceed xyz mileage, you can only have certain type of damage when you return it and mileage restrictions.

    I was on holiday recently and upon my return someone has scraped the corner of the bumper leaving a 5x5 inch gash across it. I suppose my reason is that I'm always on the edge of someone damaging the car which has just recently happened and I will be paying an absurd amount of money when the finance ends because Mercedes isn't going to like a tatty vehicle in return.

    In the last year I have only put 2600 miles on it where I have a maxiumum of 7000 per year. So despite the fact that I barely use it, it is being damaged despite its minimal use and will eventually cost me. The front bumper is easily going to cost £300 - £400 in addition to everything else. Who knows what else will be damaged by some irresponsible driver that will eventually cost me?

    I suppose I am just too paranoid to use it in any functional way. I was hoping Mercedes would take the vehicle back as it is below mileage as thus worth more currently.
  • Nearlyold
    Nearlyold Posts: 2,289 Forumite
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    Do you mean a gash (ie a 5inch by 5 inch hole) or a scratch/scuff? If you don't want to claim on your insurance why not get a firm quote from a body shop or mobile bump and scrape repairer.

    TBH I think you are over thinking this, if you stump up the £3743 (assuming they would accept your proposal) then just over a years motoring (without including fuel, insurance, maintenance etc.) will have cost you best part of £5,500 leaving you with no car to drive!!

    At your mileage you are not going to get a mileage charge. Any damage beyond wear and tear which you don't get fixed is going to cost you anyway whether you have a PCP or not as it lowers the value of the vehicle
  • bengalknights
    bengalknights Posts: 5,021 Forumite
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    Would you rather pay £3743.75 now or just spend £1200-£1500 at the end just repairing it?

    The choice is yours although personally i would have just got my insurance to repair it at the end
  • bazzyb
    bazzyb Posts: 1,584 Forumite
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    Proxy89 wrote: »
    There are a lot of stipulations in using a financed vehicle in such that you cannot exceed xyz mileage, you can only have certain type of damage when you return it and mileage restrictions.

    Don't forget that these restrictions will only ever apply if you hand the car back. Do you like the car? If so, would you not consider keeping it at the end of the term? If you hand it back at the end, you will have nothing to show for what you've paid into it up until that point. (Plus potential additional costs as you've already worked out).
  • meer53
    meer53 Posts: 10,217 Forumite
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    Proxy89 wrote: »
    It was my first attempt at financing a car as I suppose the excitement got the better of me.

    There are a lot of stipulations in using a financed vehicle in such that you cannot exceed xyz mileage, you can only have certain type of damage when you return it and mileage restrictions.

    I was on holiday recently and upon my return someone has scraped the corner of the bumper leaving a 5x5 inch gash across it. I suppose my reason is that I'm always on the edge of someone damaging the car which has just recently happened and I will be paying an absurd amount of money when the finance ends because Mercedes isn't going to like a tatty vehicle in return.

    In the last year I have only put 2600 miles on it where I have a maxiumum of 7000 per year. So despite the fact that I barely use it, it is being damaged despite its minimal use and will eventually cost me. The front bumper is easily going to cost £300 - £400 in addition to everything else. Who knows what else will be damaged by some irresponsible driver that will eventually cost me?

    I suppose I am just too paranoid to use it in any functional way. I was hoping Mercedes would take the vehicle back as it is below mileage as thus worth more currently.

    Get it repaired ? I've had 6 cars on PCP, never worried about damage or mileage. If you did you'd never go anywhere in it.
  • molerat
    molerat Posts: 31,865 Forumite
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    It will cost the same to get rid now or in 25 mths so the actual cost of 25 mths motoring with this car will be the cost of repairing any extra damage you do in that time. They are only likely to cut a deal if trading in.
  • Proxy89
    Proxy89 Posts: 11 Forumite
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    I will do as you guys suggest and keep the car. The monthly repayments aren't really that excessive and I have more than enough money to cope with it. I suppose my worry is that I'm afraid of it being damaged.

    Thanks for the talk guys.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Proxy89 wrote: »
    I will do as you guys suggest and keep the car. The monthly repayments aren't really that excessive and I have more than enough money to cope with it. I suppose my worry is that I'm afraid of it being damaged.

    Thanks for the talk guys.

    What being damaged, the car ?

    Unfortunately you can't prevent any damage, well you could wrap it in bubble wrap.
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