Mercedes PCP EoC issue

Adey68

Hi Martin,
I took out a PCP with Mercedes 33 months ago for 36 months. I want to buy another vehicle from VW on a PCP. I was told by them I should just be able to hand the vehicle back and pay for excess mileage and any damage. So with that in mind I ordered a new vehicle and contacted Mercedes. They have told me, if I want to had the vehicle back on a voluntary basis I have to pay them £769.00 plus it will go on my credit reference for 5 years. The second option is to pay 95% which is £1,050.00 plus additional mileage and damage. I went back to VW and they said they have never heard of this previously. I have checked my online finance documents from mercedes and they are very basic and only tell you what you car value is today if you want to settle.
Can you please tell me if they are within their rights to ask for these payments?

Thanks
Adey68

BoGoF

Without seeing your finance documents impossible to say. What was the total amount of finance, including interest and ballon payment? What are the monthly repayments?

ps, if you are expecting Martin to reply you are going to be disappointed!

[Deleted User]

Adey68 wrote: »

Hi Martin,
I took out a PCP with Mercedes 33 months ago for 36 months. I want to buy another vehicle from VW on a PCP. I was told by them I should just be able to hand the vehicle back and pay for excess mileage and any damage. So with that in mind I ordered a new vehicle and contacted Mercedes. They have told me, if I want to had the vehicle back on a voluntary basis I have to pay them £769.00 plus it will go on my credit reference for 5 years. The second option is to pay 95% which is £1,050.00 plus additional mileage and damage. I went back to VW and they said they have never heard of this previously. I have checked my online finance documents from mercedes and they are very basic and only tell you what you car value is today if you want to settle.
Can you please tell me if they are within their rights to ask for these payments?

Thanks
Adey68

If you’ve already paid half the cost of the car, or make up the difference between what you’ve already paid and half of the car’s cost, you have the right to return the car to the finance provider under the Consumer Credit Act 1974.

This is called ‘voluntary termination’ and it's important that you tell the finance company that you want to 'voluntarily terminate' the contract and return the car and not that you want to 'voluntarily settle.'

DrEskimo

Before considering any of that however, have you asked what the car is valued at trade?

Compare this with the settlement figure you owe on the remaining finance. If it's the same, you might as well just trade it in. It might even be worth more than you owe.

Get lots of different quotes from online brokers, dealers and indie garages. You don't have to trade the car in to the same place you are buying the next. In fact, it is often discouraged.

Adey68

Thanks for your responses, Lover of Lycra, so if I say I want to voluntarily terminate, will this affect my credit file and can they charge me for doing it?

chanz4

Is this a consumer credit act agreement?

Penelopa.Pitstop

If MBFS wants £769.00  to voluntary terminate, that's probably the amount needed to hit 50% of total value. When is your new car arriving? Check what's settlment quote with Mercedes and compare it with part-exchange price.