Can someone help me understand MB Finance

[Gruffalo]

Like many people, I got a C63 on contract hire and have loved every minute with the car. The deal was good and I knew I'd go over mileage but happy to pay the excess at the end of contract.

With the contract end approaching, I asked MB finance what my options were to keep the car longer. They gave me an option to extend the contract by 12 months but the monthly payment went up by £300 a month due to residuals. I asked if I could pay a lump sum to bring the residuals back on track (like an advance payment) and carry on paying something closer to my current monthly payment. Computer says no. I asked if I could buy the car. Computer says no. What happens to the car when it goes back. It goes into a closed auction and will be sold into the trade for a pittance.

So here I am offering to pay more money and because 'computer says no' MB finance don't seem to have any ability to make a commercially sensible decision. Am I missing something ?

 

[def90cars]

I guess the disadvantage of "hire" versus "purchase".

Why not just get a new one on a better deal?

 

[MartinLynagh]

If it's business contract hire they are not allowed to sell it to you, I think it's something to do with VAT, if you ask the fleet manager (nicely) you might be able to find out where it will be sent to and buy it. I did this for one of my old company cars and went to the ex-fleet auction and bought it for the misses...

 

[Gruffalo]

Thanks guys. unfortunately, the deals on a new C63 aren't the same, may have to take a sabbatical and wait for the deals to come down again. I just can't believe there isn't another answer other than £300 a month more or return the car.

 

[Spin_bowler]

How much were you prepared to put in as a lump sum? Can't you keep that and use it to offset the 300/month?

 

[davidjpowell]

Look at it the other way. You've had a subsidised car for 3 years as MB at the time needed to churn them out and were doing exceptional PCP deals.

The subsidy was only ever going to last so long....

 

[Gruffalo]

I'm resigned to the fact this could the end :-( I will be really sad to see this car go

 

[RhysC63?]

I'm in a similar sittuation, new deals were not palatable for the new C63 and besides, the wait would have been too long between the two 63s. So what I've done is gone for a 2 year deal on an E350 premium plus, paying about £80 a month less than for the C63.
With luck, in 2 years there may be better deals around on the C63, nothing id guaranteed of course but I'm sure I can live with the E350 in the meantime - I sometimes feel sad thst I wont have a 63 after March, but I do need a kick in the backside now and again to remind myself that I should be thankful that I'll be driving the E350, it's not that bad a place to be all said and done!