Advice Please - End Of Car Contract Period

blackclouds

My advice would be to take the original agreement to CAB and get advice as there are so many different types of finance deal out there on cars. It appears you have some time on your side at the moment so get some advice from CAB.

I have been in similar situations with cars being worth a lot less than o/s finance and the only way to refinance (as I needed quick changeover on cars) was getting trade ins and carrying over neq eq. I ended up forced into a brand new car as the neq eq was too high for dealer to absorb and the only way was a heavily discounted new car so I ended up with £17k of finance on a car the dealer had discounted to a screen price of £11k to get the deal through.

Dealer was my close friend and I had full access to all his figures etc so I did get a genuine £6k off list but it was still a nightmare and 18 months later the car was worth only £7k :eek: :eek:

Do not trade in as you are compounding the problem and carrying it into the new finance - get CAB to check exactly what type of agreement it is

cloudnine_2

Correct, I've just read through the agreement.
Its a Mercedes Lease Purchase - Hire purchase agreement and you're right, its Unregulated.
It gets worse too... Theres a mileage allowance of 12K per year so thats 49K by the end of four years and I'm almost at twice that. So, in theory, I guess they could even claim additional mileage charges.
Can't think of a way out of this one... I agree that I have little choice but to hand the car back in January and await the wrath of Mercedes.

standupguy

With the new increased CCA regulations comes the unfair relationships test between creditors and debtors and it is up to the creditor to prove to the contrary.

You have made your payments as per the terms of the contract but if the Finance company proceed to repossess and sell the car leaving a liability rather than continue to receive payments to reduce the final payment and finally settle all monies outstanding then they may be treating you unfairly.

It may be worth putting in a formal complaint in writing and refer to the new CCA regulations of unfair relationships and treating customers fairly?

You have nothing to lose and it just may bring them to a sensible conclusion all round?