Nearing the end of pcp

k1984 · 24 February 2017 at 5:27PM

Hello,

Has anyone had any last experience of something similar...

I purchased a Mercedes a class in oct 2014 on a 3 year pcp deal. £320 a month plus lump sum at the end. Now for the first 18 months I made the payments on time but had a few financial issues the last while where I missed payments but always made them up the next month. Checking my credit file it shows 4 late/missed payments. My credit score isn't the best now either bordering on poor/fair.

Now my pcp deal comes to an end in October and I'm wondering what happens next. Of course I know I can hand the car back or trade it in or pay off the lump sum etc but those aren't really options as 1) if I trade in or hand the car back I'd need to find a car elsewhere and on different finance and I'd struggle for that. Likewise obtaining a loan to pay off the lump sum would also be hard to obtain.

I phoned Mercedes finance who said they wouldn't be able to help me with advice until the time came to the end of the agreement.

Does anyone know if the finance company would then extend the agreement for another 3 years for instance to pay off the lump sum? Or would they be inclined to just say 'tuff' hand back or sell it t get a profit etc.

Financially things are improving and are back on track so should have 10 months of no late payments etc come October. Just looking to plan ahead

Thanks

Nearlyold · 25 February 2017 at 4:00PM

At the end of the PCP term the finance company don't usually extend the loan as such but rather arrange a new loan to cover the final payment due so you can keep the car. Whether or not Mercedes or any other finance company would do that for you would depend on their assessment of your credit worthiness at the time and/or the security offered by the car. Why not contact the Mercedes dealer to see what they can do for you in terms of options that may be available BUT be careful and don't make any rushed decisions as they will almost certainly see it as an opportunity to make some money off you.