Voluntary Termination - Mercedes Finance - Close to Monthly Payment Date

mackey76

I know there are a few threads about this, but I couldn’t find a specific answer to my questions in any of them. Apologies if I have missed them if they exist.

I have a car on PCP with Mercedes Finance, on a 48-month agreement, with 6 payments left to make until the end of the agreement. I have verified that I have already passed the 50% point of the total PCP as is required for voluntary termination (Mercedes actually told me when I called about something else and told me I could VT if I wanted).

For various reasons, it is my intention to do a voluntary termination on the car by email tomorrow (Sunday 19th). If I need to then I can also send a recorded letter to the same effect on Monday 20th – is this usually required or is email legally binding?

The car is immaculate and in near showroom condition still as I have taken very good care of it and there is no damage on the vehicle whatsoever. I do however have close to 20k of excess mileage (which I am prepared to pay if it comes to it but would obviously rather not).

My payments are made monthly by direct debit, and the next payment is due on Friday 31st.

If I issue VT on 19th by email (and 20th by post if required), are they likely to take the payment due on the 31st? I don’t want to cancel the direct debit in case that causes issue, but I also don’t want them taking money I’ll probably not see again if they try to drag the process out.

From what I have read on various sites/forums, the date I issue the VT is the date my contract legally ends rather than the date they actually collect the car, so they shouldn’t be entitled to any more money in terms of monthly payments. But how does that usually work in reality?

Also, in relation to the termination itself – do I need to give them a specific amount of time to collect the car? 7 or 14 days for instance? I presume they will arrange to meet me to do the collection and not just turn up anytime during that notice period as that would be difficult with work commitments.

Finally, should I cease using the car after I issue the VT? I only ask as I foolishly filled the tank recently and I have over ½ tank left so would rather use it to the last minute to run the tank lower.

Thanks in advance.

motorguy

How much is 20,000 in extra miles going to cost you?

Is it less than the value of the car - the settlement figure of the car?

They will almost certainly pursue you for the cost of the 20,000 miles.

mackey76

Excess mileage is £1800 max. Settlement is much much higher, and the car is in negative's equity to the tune of about £5k so under normal circumstances I'd be handing back at end of agreement anyway and paying mileage.