Mercedes Lease - Settlement

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Jibbajabba

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E63S
Decided to keep my leased E63S I got from new in 2020 now I wonder - how long until they 'recognize' the fact I settled via CHAPS ?

Money should have been there immediately ... But how long does it take for them to send the 'thanks, got it' mail ?!?

After two days I noticed still no word and portal still only got the settlement quote available #impatient
 
When I settled my Mercedes lease last year it took about a month before I received confirmation. Which was a right pain in the **** as it was still showing I owed the balance when a buyer of the vehicle done an HPI check.
 
That sucks. Always makes me nervous sending large amounts of money. I bet it took them months to take it off credit files too. Funny is that they ask not to cancel direct debit. The quote I got from them included the upcoming payment in a week so you can bet I cancel the DD after that. One wise man once told me (my dad) - it is easier to ask for forgiveness than permission :)
 
Is this a PCP or HP rather than a lease? I don’t know much about car finance but I was under the impression that there is no contractual option to purchase with a lease, whereas a PCP and HP are wholly owned once outstanding balances and interest has been paid.
 
Is this a PCP or HP rather than a lease? I don’t know much about car finance but I was under the impression that there is no contractual option to purchase with a lease, whereas a PCP and HP are wholly owned once outstanding balances and interest has been paid.
I ‘sold’ my Vito to a ‘mate’ Rob. It was on a lease from vanarama. Only criteria was you had to sell to a third party.

a month later my ‘mate’ signed it over to me. 🥳
 
Is this a PCP or HP rather than a lease? I don’t know much about car finance but I was under the impression that there is no contractual option to purchase with a lease, whereas a PCP and HP are wholly owned once outstanding balances and interest has been paid.

sorry yea PCP.
 
So if you got it new in 2020 on PCP how have you settled through CHAPS already? If you had a 2, 3 or 4 year agreement wouldn’t there be penalties for ending the agreement early?
 
So if you got it new in 2020 on PCP how have you settled through CHAPS already? If you had a 2, 3 or 4 year agreement wouldn’t there be penalties for ending the agreement early?
You can request a settlement through the finance website at any time. I always knew I wanted to keep it so my deposit was significant as well. It was pretty much maximum (I think deposit was almost equal to final payment).

Also Mercedes doesn’t have a PCP per-se. They call it Agility. And as the name suggest, it is more ….. agile. Still was a mistake though. If you intend to keep the car, using Agility costs too much interest.

As the borrower under the 1974 Consumer Credit Act customers with Agility or Hire Purchase agreement types are entitled to settle your agreement early by giving notice to the lender (Mercedes-Benz) and paying the outstanding balance less any rebates.

the purchase fee is kinda laughable as they charge something like £23
 
When I sold my e class ragtop which was on PCP, the buyer paid against my settlement letter and then gave me the balance. MB Finance didn’t acknowledge the end of the agreement until I phoned them up and asked for a close of account letter. They said it wasn’t their normal business practice to acknowledge closure.
 
You can request a settlement through the finance website at any time. I always knew I wanted to keep it so my deposit was significant as well. It was pretty much maximum (I think deposit was almost equal to final payment).

Also Mercedes doesn’t have a PCP per-se. They call it Agility. And as the name suggest, it is more ….. agile. Still was a mistake though. If you intend to keep the car, using Agility costs too much interest.



the purchase fee is kinda laughable as they charge something like £23
Ah right. In an earlier post you said it was PCP and that’s why I was surprised when you said you had settled the finance through CHAPS as there would have been hefty penalties for finishing the agreement early had it been a PCP.
 
Ah right. In an earlier post you said it was PCP and that’s why I was surprised when you said you had settled the finance through CHAPS as there would have been hefty penalties for finishing the agreement early had it been a PCP.

Apologies. I misspoke.
 
When I sold my e class ragtop which was on PCP, the buyer paid against my settlement letter and then gave me the balance. MB Finance didn’t acknowledge the end of the agreement until I phoned them up and asked for a close of account letter. They said it wasn’t their normal business practice to acknowledge closure.
Errrmm. Ooooh K. Bit of a rubbish move by them. Thing is. Portal says the plan isn’t settled and they write to not cancel direct debit until they acknowledge it. Hate large corps sometimes.
 
Ah right. In an earlier post you said it was PCP and that’s why I was surprised when you said you had settled the finance through CHAPS as there would have been hefty penalties for finishing the agreement early had it been a PCP.
Really? I’ve PCP’d cars and them sold them prior to the end of the initial term, or p/x’d them to a dealer. You get a settlement figure and you clear it. Never been any concept of a penalty nor an overly high settlement figure

Wind back to the 90s when leasing, especially personal leading wasnt a thing, car finance tended to come with a lower settlement figure if you took out another loan for the next car. Remember selling my 500SL to a Mercedes dealer who withheld about £1200 of the agreed price until I bought my next car as the settlemeng figure was dependent on my continued business
 
Errrmm. Ooooh K. Bit of a rubbish move by them. Thing is. Portal says the plan isn’t settled and they write to not cancel direct debit until they acknowledge it. Hate large corps sometimes.
One sure way to get a response from them is to cancel the DD.
 
One sure way to get a response from them is to cancel the DD.
No way I wouldn’t cancel it once cleared, don’t take chances with anyone taking my money when they shouldn’t, it always takes so much longer to get it back
 
Ah right. In an earlier post you said it was PCP and that’s why I was surprised when you said you had settled the finance through CHAPS as there would have been hefty penalties for finishing the agreement early had it been a PCP.
Perhaps that’s based upon value. Once you’re outside of the upper limit of the Consumer Credit Act then I suspect an early payment penalty could be a thing.
 
Perhaps that’s based upon value. Once you’re outside of the upper limit of the Consumer Credit Act then I suspect an early payment penalty could be a thing.

I think with some loans, especially mortgages you get interest penalties if settling early. Having said that, since the crack down of dodgy contracts (looking at you endowment policies) those penalties are rare. In fact, I got a £5k ‘discount’ from MB for settling early.

Not to mention the interest I am saving but that’s obvious.
 
Perhaps that’s based upon value. Once you’re outside of the upper limit of the Consumer Credit Act then I suspect an early payment penalty could be a
I think with some loans, especially mortgages you get interest penalties if settling early. Having said that, since the crack down of dodgy contracts (looking at you endowment policies) those penalties are rare. In fact, I got a £5k ‘discount’ from MB for settling early.

Not to mention the interest I am saving but that’s obvious.
Early redemption penalties on fixed term mortgages are the norm and definitely not rare.
With you getting 5k, along with interest saving it looks like you did the right thing in settling the finance on your car 👍
 
I think with some loans, especially mortgages you get interest penalties if settling early. Having said that, since the crack down of dodgy contracts (looking at you endowment policies) those penalties are rare. In fact, I got a £5k ‘discount’ from MB for settling early.

Not to mention the interest I am saving but that’s obvious.
What did the £5k relate to then?
 

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