Mercedes Benz Finance- How to get out!!!??

curtisbennett155

I recently purchased a Mercedes Benz on their Agility finance and I am paying £361 per month (£388 with the service plan etc on top)... However I recently took a job in London (whichif I hadn't of taken, would have been made redundant from my previous job) which means I get the train which costs me £400 per month!

I have only had the car 2 and a half months (7th Sept 2012) and have done 2,500 miles but I am really struggling with my finances with having to pay for the cost of the car along with diesel and having the additional expense of the train fare. I really no longer need the car and I am in a complete dilema as I have signed an agreement for 3 years but am in a cycle of having to go into my overdraft every single month just to survive.

Is there any advice or any way I can get out of the agreement as I can no longer afford it?? I understand that they probably will not care too much as I am still making the monthly payments but obviously I am struggling every month because of it and getting further and further in debt. I really need to try and get rid of it before I get further in debt and paying over £750 on transport a month out of my salary is killing me!

Any advice or experience would be really appreciated! Thank you in advance for any replies!

sistafromanothermista

:wave: What does your agreement say about cancellation?

Asiacat

Cam you not write to Mercedes explain your situation and ask them to make you an offer to take the car back and deduct the exchange value from your debt.

You are going to have to pay a lot for under three months usage of a car (It loses 20% of it's value once you drive it off the forecourt).

Even if you never use the car again it is still depreciating every month you hold on to it so the sooner you can find someone to buy it the better.

If Mercedes won't play ball can you sell it privately and use the proceeds to at least reduce the amount you owe significantly?

Talk to Mercedes first then come back on the forum and take it from there.

thatsean

If it's a standard HP deal you can normally terminate once half the payments have been made, I don't think there is any such protection for lease or pcp.

I don't think there is an easy way out of this one unless MB will allow a voluntary repo of the vehicle and then you come to an agreement with the depreciation.

curtisbennett155

Asiacat wrote: »

Cam you not write to Mercedes explain your situation and ask them to make you an offer to take the car back and deduct the exchange value from your debt.

You are going to have to pay a lot for under three months usage of a car (It loses 20% of it's value once you drive it off the forecourt).

Even if you never use the car again it is still depreciating every month you hold on to it so the sooner you can find someone to buy it the better.

If Mercedes won't play ball can you sell it privately and use the proceeds to at least reduce the amount you owe significantly?

Talk to Mercedes first then come back on the forum and take it from there.

Wow! As much as 20%! That would be £7,000 alone so I hope they will not be asking for that! I paid upfront £4,600 deposit so I am hoping that this may help to some extent? Or will this deposit not be taken into consideration? Should I contact Mercedes Benz finance on the first instance or the dealer? After only having the car a short while it's extremely embarrasing going to the dealer but I can't afford and have no need for the car anymore.

Thanks for your reply.

rising_from_the_ashes

Have you got the T&Cs as it should state in there what the options are.

Did you have no notice that your previous job was going to be made redundant?

Most employers are required (by law) to do a 90 day consultation before anything can happen - if this didn't happen it may be worth going to the employment boards and seeing if one of the experts there could advise (ie if you'd known, you'd not have - I hope - a) bought a new car & b) especially an expensive one)

thatsean

Deposit makes no difference because that's already gone into the numbers that you have now.

They will be asking for the shortfall - you're asking to return an asset that has devalued. If the car had a list price of 35k when you signed on the dotted line, it will take a huge hit 2 months on. You only need to look at the prices of some cars at car supermarkets to know that cars take a horrendous hit in the first year.

You need to be talking to MB finance, the dealer have no interest in you now the deal is closed.

You need to refer to the Ts and Cs of your finance deal, if it's a HP deal then you could sell it and agree to repay the shortfall - if it's a lease type deal, your options are fewer - but the short of this is, it's going to be expensive.

sistafromanothermista

I agree. Also some of the finance agreements don't actually allow you to sell the car on. If you had taken out a loan to pay it then that would be a different matter.
Let us know what the t&c say..

rising_from_the_ashes

Duplicate thread

https://forums.moneysavingexpert.com/discussion/comment/57498169#Comment_57498169

DCFC79

rising_from_the_ashes wrote: »

Duplicate thread

https://forums.moneysavingexpert.com/discussion/comment/57498169#Comment_57498169

duplicate thread #2 motoring section

https://forums.moneysavingexpert.com/discussion/4308957

OP you had 3 replies on the first 2 threads and you decided to post it for a third time.

thatsean

DCFC79 - that quote is legendary!