Ending Agility finance early

[Andy4242]

I bought a new c250 cdi sport on agility 27 months into a 36 mth agreement.I am having financial difficulties now.
Am I able to end my agreement with mercedes by handing the keys back without penalty or would I have to try and sell the car privately and hope that I can get enough to cover the balance of the settlement figure.

 

[grober]

I think you need to talk to MB finance who will explain your options.

 

[Rory]

As above really, the termination rules should be in the contract but MB will be able to tell you your exact position.

With standard HP you can hand the car back when half the amount has been paid, but with PCPs that point isn't reached until very near the end of the agreement due to the final value always being outstanding.

 

[ucr]

MB finance 01908 245000

 

[mw_C32]

First ask MB finance how much is left to pay.

You should be able to sell the car, hopefully for more than the amount outstanding. Advertise at just above this amount to attract traders if it's low enough. Ask the purchaser to pay off the finance first and give you any remaining money.

If the sale is for less than what is owed this will be your "penalty" for ending early, hopefully this is worst case....

 

[Merc Owner 2B]

In the first instance I'd go back to the dealer you bought it from. Hopefully they will buy it from MB finance if you tell them you'll be back for another when times get better!

At 27 months you may even see a slight profit.

I'd be disappointed in a dealer that won't help.

Who was it?

 

[The _Don]

I think they charge a small penalty eg one months payment but am not 100% sure.

 

[Andy4242]

Many thanks for your help I might have to contact them or maybe just sell it and hope I get enough to pay of settlement figure

 

[Deleted member 37751]

Sorry to hear about your financial difficulties, but I think the fact that you're only 9 month away from the end of the lease should mean you shouldn't do too bad out of it.

I think it'd have been a lot worse of you were only 9 months into the contract.

 

[grober]

Many thanks for your help I might have to contact them or maybe just sell it and hope I get enough to pay of settlement figure

I may not be correct but I don't think you can sell the car without informing MB finance of your intentions?

 

[akhan48]

Andy you can sell the car privately (providing you can find a buyer for a car on finance) and use the money to settle the finance. Or you can try your local MB dealer to see if they will buy it off you.

 

[raymont]

Andy you can sell the car privately (providing you can find a buyer for a car on finance) and use the money to settle the finance. Or you can try your local MB dealer to see if they will buy it off you.

Not an expert, but it would seem to me that you should

(a) contact MB finance to see what the terms are for exiting the agreement early, not just Ts and Cs but a specific quote for your position.

(b) ask them if you can sell privately and use the proceeds to clear the finance arrangement. I assume you must involve them as they have an interest in the car.

(c) check Autotrader, invest in a Glass's guide valuation etc. to see what the car is worth

(d) make an informed decision as to how to proceed.

 

[gIzzE]

You can do what you want with the car, however, you have to clear the finance when you sell it.

If you give me some figures I can work out what you owe pretty much.
Initial purchase price.
Monthly payments.
Balloon/final payment.

Another thing to consider is if you have got passed the 50% mark (that is 50% of what you borrowed, so if it was £35k and you borrowed £30k, once you owe £15k or less) you can simply throw the keys back at them and walk away.

It doesn't effect your credit rating as such, however it will be marked and if you try and borrow again you may not get as good a rate.