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Advice needed with car loan

suey63
suey63 Posts: 5 Forumite
Im not sure if im in the right thread here.....im in need of advice for my mother-in-law. this is a long one sorry !!

She purchased a Mercedes A Class in 2005 a few months old (agaisnst our judgement) she has had a a few problems with it that were sorted under warranty. She bought the car with a loan.... a balloon payment i think its called. This is due to end in June and she either has to pay £5400 or hand the car back in good working order.(she intends to had it back)
Now the problem....... the car would not start last week, after tooing and froing, Mercedes seem to think that its the gear bo,x at a cost of over £4000. She has spoken to trading standards who have said she can hand the car back at any time providing she has paid over half the loan (which she has). We sent a standard letter via the trading standards web sit to the finance company, who have said the car must be returned working. One guy has admitted that the car's gear box should not have gone and indeed dthey are not really sure if that is the true problem. Merdedes now dont not know what to advise her to do, they dont seem willing to help out in any way.
So she has a car that doesnt work, thats going to cost to repair near enough what the car is worth
Can anyone please advise me on anything legal I can do to help her

many thnaks

sue

Comments

  • PNPSUKNET
    PNPSUKNET Posts: 4,265 Forumite
    write direct to the manufacture, how many miles has it done. By the sounds of it she doesnt have a hp agreement but a pcp agreement so vt doesnt apply.
  • suey63
    suey63 Posts: 5 Forumite
    According to her paper work, it does seem to be an HP agreement. I think it has done about 52,000 miles
  • PNPSUKNET
    PNPSUKNET Posts: 4,265 Forumite
    It sounds like she took the mercedes-benz agility , this has togo the full term. the hp hasnt got a balloon payment.
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