Mercedes Benz Car Finance- PLEASE HELP!?!?!

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!

TastyTeeth

Try and sell it. The finance company won't be interested in taking it back.

Was the car new or second-hand? If new, you'll probably have a significant shortfall between the value and outstanding finance owed.

Mara69

You must have known about the new job when you bought the car. I see no way of you wriggling out of the agreement you've made. Maybe try to get a loan, pay off the finance and sell the car?

Selling the car with finance will be difficult as most people won't touch a car with outstanding finance.

curtisbennett155

TastyTeeth wrote: »

Try and sell it. The finance company won't be interested in taking it back.

Was the car new or second-hand? If new, you'll probably have a significant shortfall between the value and outstanding finance owed.

The car was new, I also paid an upfront deposit of £4,600. I can't sell it unless the finance company agrees. I am hoping they will take into consideration the deposit already paid.

curtisbennett155

Mara69 wrote: »

You must have known about the new job when you bought the car. I see no way of you wriggling out of the agreement you've made. Maybe try to get a loan, pay off the finance and sell the car?

Unfortunately I didn't know about the job when purchasing the car and it all happened within the space of two weeks but all documents had already been signed for the car.

I am hoping that Mercedes would rather have a 2 month old car back that they can most likely sell on quicker and have someone that can maintain payments as I will have to explain that I won't be able to continue with the payments should I carry on owning the car which will end up being more difficult for both of us.

thatsean

Curtiss - You've got two threads running on the same topic - this just confuses things.

Re MB - I doubt they will care, you signed the agreement, that's the tall and the short of it.

Can you not use the car to get to work and park further out of town, and get the tube in?

Garage_Flower

An unfortunate situation you find yourself in where you can't afford to keep the car but can't get rid of it either.

Mercedes won't take the car back as they will lose money on it due to depreciation also you have signed a credit agreement for three years that you are liable for.

There are ways that you can hand the car back though each will leave you a balance to pay. 'Voluntary termination' is where you can hand the car back at 50% of the way through the agreement for no cost (unless insurances have been taken on the account, these are still payable) as you are below 50% you will have to pay to get the agreement to that point to satisfy this. 'Voluntary surrender' is where you hand the car back to your creditor, they will sell it at auction and the amount received for the car will come off your balance. You will be liable for the remaining amount.

Discuss your situation with Mercedes and see what they suggest.

ihateyes

also 2500miles is a lot of mileage for 2months when your usig the train

DCFC79

This will be expensive for the OP, very costly.

curtisbennett155

Garage_Flower wrote: »

An unfortunate situation you find yourself in where you can't afford to keep the car but can't get rid of it either.

Mercedes won't take the car back as they will lose money on it due to depreciation also you have signed a credit agreement for three years that you are liable for.

There are ways that you can hand the car back though each will leave you a balance to pay. 'Voluntary termination' is where you can hand the car back at 50% of the way through the agreement for no cost (unless insurances have been taken on the account, these are still payable) as you are below 50% you will have to pay to get the agreement to that point to satisfy this. 'Voluntary surrender' is where you hand the car back to your creditor, they will sell it at auction and the amount received for the car will come off your balance. You will be liable for the remaining amount.

Discuss your situation with Mercedes and see what they suggest.

Thank you for your reply. It has been the most helpful and informative.

Is the voluntary termination something that can only be done with Hire Purchase? I am with Mercedes Benz Finance with something they call 'Agility Finance' where they guarantee a future value and you can either hand back the car, refinance the GFV and keep it or trade for a new model. This represents most likely a PCP contract.

At the moment handing it back half way throught the agreement may be the most cost effective way as a lot of people have said that trying to hand back the car will be extremely costly due to the immediate depreciation from driving it off the forecourt. Unfortunately I am in catch 22 because I can't afford an immediate costly implications to hand back the vehicle and have lots of additional charges but also can't really afford paying.. But if the value is going to work out roughly the same to pay for the next 15 months or have the one off cost I will have to keep the vehicle somehow or try and lower the monthly payments with MB.

DCFC79

Tighten your belt, sell stuff on ebay.

I wish you luck with getting it sorted.