help again about handing our car back

54druids

Pulling my hair out here. Getting rid of our merc tomorrow. It has 7 months left on a hire purchase scheme. I have worked out thatf we excercise our right to hand it back excess mileage will cost us 2400 quid. Settlement figure is just under 16k. We went to an audi dealer who offered us 12.500 so we would be worse off by a grand. We are now thinking of going to merc and getting a cheaper model, do you think we would get a better price since it is the same company?
We could just hand the car back but then we are worried they may try and charge us for wear and tear scratches or something and end up costing us alot of money in addition to the 2400 excess mileage. Don't really know what to do for the best. Help!!!

Flyboy152

How many months was the original contract, what was the original contracted miles and how many miles has it done now? What model and variant is it?

The mileage is calculated on a pro-rata basis. If your set mileage is thirty six thousand, over three years and you have done forty thousand miles, in twenty-eight months, your excess mileage is not six thousand miles, it is twelve thousand miles.

54druids

Yes it's 36 months out of a 43 month contract at 20k miles a year and we have done 79k miles when I worked it out to be about 59 we should have done at this time according to the contract. Few scratches here and there and a nick in the leather in the magazine rack on the back of the seat so wonder how much they will sting us for that

Flyboy152

54druids wrote: »

Yes it's 36 months out of a 43 month contract at 20k miles a year and we have done 79k miles when I worked it out to be about 59 we should have done at this time according to the contract. Few scratches here and there and a nick in the leather in the magazine rack on the back of the seat so wonder how much they will sting us for that

In which case, you are nineteen thousand miles over and will be charged accordingly.

You will be far better off having these bits of damage repaired yourself. Mercedes apparently have a reputation for adding quite a bit on to the costs of returned repairs (not that I have experienced this myself). Read the finance company's fair wear and tear policy and take copious photographs. Get the collection agent/dealer to agree that there is no visible damage to the car, beyond what you already know.

I presume this is a PCP, rather than traditional hire purchase.

maninthestreet

OP, when you hand it back, take plenty of photos of it, and ensure it is inspected in your presence, any 'damage' is pointed out to you/

54druids

Well this is really weird as I have just called black horse and they told me as i am handing the car back voluntarily that there is nothing more to pay not even mileage. Yippee I thought and then I read your posts so can anyone clarify?

bigjl

This doesn't make sense to me, £16.5k settlement with 7 months to go?

Are you sure this is a HP agreement or a PCP?

One reason why I would never ever have a PCP.

Surely you would be better of just keeping it for the next 7 months, the inspection done at the end of am agreement is a lot less vigorous than one when to terminate early, at least from what I have been led to believe,

terminate early at your own risk appears to be the order of the day.

As far as I am believe then a PCP is only good to get you into a car you can't afford the monthly payments on one.

And yes I had one back in '99, would never have one again, neither would I have a part rent part buy home ever again.

54druids

It does make sense when you realise it is a big boys toy merc!!!It was a stupid purchase at the time, but hey at the time things were really good.
Settlement figure is under 16k and the reason we are handing it back is that it is costing us a massive amount each month, recession is biting and it means I reckon we will save nearly a grand a month by the time you factor in payments, huge petrol costs, tax and insurance. If we wait til the end of the contract we will have to hand it back anyway or find 13k (bank have told us we could refinance at 10.9% ouch!)
We can loan a car from my mother in law and have only petrol and insurance so it will save us about 7k. Think it is a pcp but now a bit worried about what i have just been told on the phone about no further penalties

bigjl

I reckon your best bet is to let your motherinlaw use it and you use her car, she may do less miles and get cheaper Insurance, if you make up some of the difference between your motherinlaws current motoring outgoings and the new outgoings.

Don't forget that finance companies are much less likely to look for every little fault if you complete the agreement.

I wouldn't buy the car either, as you can drive down to London and buy one of Addison Lees ex Private Hire Merc E220 CDis, autobox and leather with about 110k on the clock for just over £10k.

CarGiant has lots of ex fleet Mercs, Audis and BMWs, 3 yr olds are from £10k, some higher mileage ones are even less.

In London you can't give away a petrol exec car, the dealer must have been laughing his !!!! off that he managed to sell a petrol one to you, but then dealers never tell you the full story.

Most people I know down south would have had it clocked to avoid the mileage charges, not just people in the mtor trade, I mean normal run of the mill car owners, car clocking is at epidemic proportions due to ileage clauses in PCP's.

I would rather have a above average mile fleet car with a nice long print out for servicing.

54druids

Actually we have already been trying to get the mileage down as I have been driving it for the school run for the last 4 months and my husband has had my car. Still worried about why the black horse told me that I didn't have to pay anything further on it. Also still cant see the logic in hanging on to it:j Also my mil is 84 and does not currently and more to the point should not drive:)

Flyboy152

bigjl wrote: »

This doesn't make sense to me, £16.5k settlement with 7 months to go?

Are you sure this is a HP agreement or a PCP?

One reason why I would never ever have a PCP.

That makes no sense. If the car is worth thirteen thousand pounds and the guaranteed minimum value is sixteen thousand pounds, you will have saved three thousand pounds in depreciation. Sounds like a no-brainer to me.

Surely you would be better of just keeping it for the next 7 months, the inspection done at the end of am agreement is a lot less vigorous than one when to terminate early, at least from what I have been led to believe,

terminate early at your own risk appears to be the order of the day.

Since when?

As far as I am believe then a PCP is only good to get you into a car you can't afford the monthly payments on one.

And yes I had one back in '99, would never have one again, neither would I have a part rent part buy home ever again.

Then lose out, because it is one of the most efficient ways to finance a car, especially if one likes to change their car regularly.