Taking car on MB Finance abroad

[Mike199]

Hi guys,

Mike here, new member.

Got myself into a bit of a pickle.I have a Mercedes E Class on Agility (PCP) finance and I am the holder of V5/registered keeper etc. I put down a large deposit (33% of total value) and structured the deal with MB in a way that I'd make monthly payments and have roughly the same amount as the deposit to settle the car at the end of the three year deal. It might not make sense to some, but anyway, that's just the way we chose to do it at the time. There's only about 35% of finance to pay off including the settle fee.

Anyway, I want to go abroad. I've had company cars etc in the past and have taken the Ferry/Eurotunnel to France loads of times and didn't consider whether this was actually allowed at the time. They were just day trips and had no issue. I did the same with a family car (Ford Focus) that we had at the time about five years ago and went to France/Spain for a week.

I've got a shortish term role in Greece with the possibility of me staying for a good few years potentially one, two, three or more. Once the car is in Greece I'd have no problems because I've got a shipping agent out there who has explained to me the way to do it which is have the car as a temporary import as long as possible, legally six months initially and then also legally customs can extend it three months at a time depending on my employment length because it makes sense to keep it as temporary import rather than reregistering it on Greek plates and then having to do the opposite if I return after 12 months. Everything to do with insurance etc is fine.

Now I've got two stumbling blocks that I didn't consider and this is partly my fault and partly the shipping company. I thought about driving, and actually if I put it on the ferry/eurotunnel to France I reckon I'd have no problem, but I wanted to ship because it's not too dis-similar in price and it's easier. Couple of things that concern me - at no point did anyone tell me or inform me that there could be an issue with customs allowing the car to ship on the South Coast if it has outstanding finance (shipping company has copies of V5 in my name) and at no point did I know that Mercedes Finance have limitations on doing this. As far as I am aware they allow a 2 week trip to Spain for example but not longer than 30 days (although I'm guessing they'd have hard time getting a car back once it's gone anyway regardless of time limit) and they get funny about certain countries like Greece.

I see why there are restrictions in place to stop people stealing cars and financing cars and then moving them abroad, but my intentions are honest. I was going to pay off the remaining 8 or so months as usual as a monthly payment and then settle the remaining figure at end, by which time if I needed to fully register the car permanently in Greece and register on Greek plates I'd have no issue because I'd have full ownership. It was discussed with the agent that you can't register/permanently import a car that has finance but you can drive it as a temporary import within the EU with no issue.

The car now isn't in my possession and is at the port being ready to be shipped tomorrow as I dropped it off on Monday morning, and I am very nervous considering I just researched this about an hour ago. The conversation with the shipping company was pretty much I explained the situation to them and they said "OK we just need payment and a copy of V5" and that was it. No mention about anything else so I didn't consider the finance issue or ownership issue.

Does anyone have any experience with taking a car with outstanding finance abroad? I'm sure loads have done it to Spain or France without issue but that's self-drive....I've got a feeling because of the amount of cars stolen etc when shipping customs might be tight and my bright shinning white E class might attract attention.

 

[Eddy77]

I don't have any experience of the particular issue, but as someone who works for an asset finance company, I can see the issue.　


Your car is the asset against which the finance is secured. The idea being that if you don't pay, they take it away. Except for the fact that the car will be in Greece and cost them ££££ to repatriate if you don't pay the rental on it.　So the car acting as collateral is diminished somewhat if you choose to stop paying.

It's the same issue that company's like mine have with things like aircraft. It's all very well saying that we will repossess a plane if the airline fails to pay, but if the plane is parked in a desert in Namibia, that is harder to do than if it is parked up at Stansted.

There's no way that MB Finance would be happy with the car being over in Greece long term.　

Your best bet is to settle the finance off early so that you own the car outright. Ask for an early settlement figure and take possession asap.　

That to me would seem the right thing to do and everyone should be happy.　

 

[MancMike]

Mike here, new member.

The conversation with the shipping company was pretty much I explained the situation to them and they said "OK we just need payment and a copy of V5" and that was it.

Hi, Mike.

I can't think why they might have said this.

 

[Mike199]

I don't have any experience of the particular issue, but as someone who works for an asset finance company, I can see the issue.　


Your car is the asset against which the finance is secured. The idea being that if you don't pay, they take it away. Except for the fact that the car will be in Greece and cost them ££££ to repatriate if you don't pay the rental on it.　So the car acting as collateral is diminished somewhat if you choose to stop paying.

It's the same issue that company's like mine have with things like aircraft. It's all very well saying that we will repossess a plane if the airline fails to pay, but if the plane is parked in a desert in Namibia, that is harder to do than if it is parked up at Stansted.

There's no way that MB Finance would be happy with the car being over in Greece long term.　

Your best bet is to settle the finance off early so that you own the car outright. Ask for an early settlement figure and take possession asap.　

That to me would seem the right thing to do and everyone should be happy.　

I think the issue is always it's not an issue as long as payments continue as usual and the fella pays the car off at the end. I appreciate sometimes circumstances can cause issues but in my case the car will be paid off (but MB aren't to know this). I'd rather not do it in one go for obvious reasons but if I have to I will do it, or leave it in UK. The issue I have right now is the car is due to be shipped tomorrow, and it will take me a few days of moving money around and messing about with my accounts/balance transfers to settle the payment.

I guess if customs let it through or it's shipped, then I can make the settlement and the issue is done and dusted. That's if they do. If they hold it or flag it as having outstanding finance, I have no idea about the procedure but time will tell I guess (I'd be a little surprised though considering the amount of stolen cars that apparently get through). So now unknown to be, the issue isn't really with MB Finance because either way they'll be paid as normal ie monthly payments and final settlement or I'll settle in one go, the issue is the shipping company/customs. Probably a good idea to call the shipping company!

 

[Mike199]

Hi, Mike.

I can't think why they might have said this.

Sorry I didn't make it clear. I gave it no thought that the car was under finance. In my head it was the EU, and it was just the same as taking it to France for the day or Spain for the summer etc and then returning it or making the decision to keep it there. I didn't mention finance and they didn't ask. They just said all we need is the car, the v5 and payment. Because my plan is to obviously keep paying the remaining 8 months of payments and then settle at the end to keep the car I obviously gave no consideration to the fact that even though it wouldn't happen, what would happen in the event of me not paying anymore or not settling and playing silly buggers keeping the car abroad.

 

[Tiim533]

Ask MB Finance

 

[Eddy77]

Ok you have two options. Ship it, assuming the car doesn’t get blocked, just use it in Greece and pay the next 8 installments and ballon. MB finance will never know. Not technically right but if you pay nobody’s out of pocket.

Or call MB. But I’m pretty sure they will say ‘no’ and where does that leave you? The cars already in a container!

So given where you are in the process, I say that you just hope it gets to Greece ok and then just use it and pay your rentals on time. If the car gets blocked or flagged, claim ignorance and deal with whatever you have to then do. Chances are it’ll be fine!

 

[whitenemesis]

How about insurance? You cleared it with your insurers?
Will the car be old enough to require an MoT during your time in Greece?

 

[grober]

Whot he said^^^ The finance company don't need the car back but they will want their money and take steps to obtain it while possibly flagging you as a bad credit risk in the meantime! I imagine there's a clause that says all monies owed become outstanding after the 30 day period if that constitutes a failure to adhere to the terms of your agreement. They might well interpret the temporary 6 months import as reasonable evidence of your intention to keep the car abroad for longer. Somewhat pointless in asking for opinions here as the only opinion/interpretation that probably matters is that of the finance company.
They are still open!
Existing Finance Customers - Mercedes-Benz Cars UK

 

[Mike199]

Ok you have two options. Ship it, assuming the car doesn’t get blocked, just use it in Greece and pay the next 8 installments and ballon. MB finance will never know. Not technically right but if you pay nobody’s out of pocket.

Or call MB. But I’m pretty sure they will say ‘no’ and where does that leave you? The cars already in a container!

So given where you are in the process, I say that you just hope it gets to Greece ok and then just use it and pay your rentals on time. If the car gets blocked or flagged, claim ignorance and deal with whatever you have to then do. Chances are it’ll be fine!

Pretty much my line of thinking to be honest given the stage I'm at. My fault as I stated for not thinking about this subject and also the shipping company for not highlighting. If it gets to Greece, then as normal the money gets paid per month and then balloon payment then it's the same thing. Might take some flack for it here but given the stage I'm at, it makes sense. I mainly made this thread to see if anyone else has taken a car abroad that has been on finance because at least personally I can see how it might be done i.e day trip to France or shall we go to Spain for the week and it not be considered.

 

[wivenhoe]

Sorry I didn't make it clear. I gave it no thought that the car was under finance. In my head it was the EU, and it was just the same as taking it to France for the day or Spain for the summer etc and then returning it or making the decision to keep it there. I didn't mention finance and they didn't ask. They just said all we need is the car, the v5 and payment. Because my plan is to obviously keep paying the remaining 8 months of payments and then settle at the end to keep the car I obviously gave no consideration to the fact that even though it wouldn't happen, what would happen in the event of me not paying anymore or not settling and playing silly buggers keeping the car abroad.

As you can afford to settle it I suggest asap you make all the arrangements and if it gets trapped in customs you can make the payment to MB and then get it released. If it gets through you could then contact MB and say you exported it in ignorance and see what they say, but inevitably it will be to pay the settlement.

 

[Mike199]

How about insurance? You cleared it with your insurers?
Will the car be old enough to require an MoT during your time in Greece?

Yeah insurance would be fine. Fine for up to 3 months in Greece and then I have to change it over to a Greek insurer...they use the chassis number not the plate if it's on British plates and quote works out cheaper.

 

[Mike199]

Saw this on another forum. Is the poster talking nonsense or he is right?

"I think you underestimate the meaning of the European Union. Your and my insurance policy will cover us to drive anywhere within its borders, and some places like Switzerland, outside. A finance company would have no power whatsoever to prevent you from taking your car anywhere within the EU. Of course, in both cases, if you actually move, you have to give a change of address, and in the case of the insurance that may affect the premium, and there will certainly be a charge for the change. I can't see why the finance company would be concerned, so long as the money kept rolling in.

As I said - in the first place there is no reason why the car, provided it is taxed, MOTd and insured, can't just be driven to Romania. It is only when that change becomes permanent that people need to be informed. It would be the same if you took it to France or Ireland."

 

[st13phil]

A finance company would have no power whatsoever to prevent you from taking your car anywhere within the EU.

Sorry, but that's complete garbage.

They can put whatever terms they like in the Contract - that you can choose to sign or not - and once you've signed it you have agreed to the terms. If the Contract says "max 30 consecutive days outside UK" then that's a core term of the contract and you are in breach if you take it anywhere outside the UK for more than 30 consecutive days.

 

[whitenemesis]

Might be interesting to read
Are YOU ready and legal to drive abroad this summer?

Taking car on PCP abroad - MoneySavingExpert.com Forums

Read this if you are taking a rental or lease vehicle abroad this summer – SimpleMotoring.co.uk

 

[Mike199]

Might be interesting to read
Are YOU ready and legal to drive abroad this summer?

Taking car on PCP abroad - MoneySavingExpert.com Forums

Read this if you are taking a rental or lease vehicle abroad this summer – SimpleMotoring.co.uk

Thanks. I already saw all of them. Most refer to lease cars and getting a form similar to a V5 because lease car owners don't have the V5 whereas as a agility/pcp customer I have the V5 in my name.

 

[Mike199]

The contract has one mention of this. I've just checked.

It says " you will not without written consent remove the vehicle for more than 30 days outside of the UK".

So in theory, according to the contract, up to 30 days you can take the car where you wish, whether that's to France, Spain, Greece or Mongolia. If we are going by the contract and I have no legal background, if nothing else is included you have to take that clause for what it is, so if you want to take the car anywhere for up to 30 days you can.

Doesn't help me in anyway because the above (30 days) doesn't help me as I need it for longer but at least that's cleared up.

 

[c63chris]

The contract has one mention of this. I've just checked.

It says " you will not without written consent remove the vehicle for more than 30 days outside of the UK".

So in theory, according to the contract, up to 30 days you can take the car where you wish, whether that's to France, Spain, Greece or Mongolia. If we are going by the contract and I have no legal background, if nothing else is included you have to take that clause for what it is, so if you want to take the car anywhere for up to 30 days you can.

Doesn't help me in anyway because the above (30 days) doesn't help me as I need it for longer but at least that's cleared up. Shouldn't have any problems getting it out then. Just continue payments and pay off next spring.

Cheers lads,

Mike (52 year old sexy white Mercedes driver)

So going by the above they will have no problem unless and until the car is out of the country for more than 30 days at which point you will be in breech of contract. If I were you I would inform them. Worst case you pay off the car before it’s out the country for over 30days. Best case they will be fine. If it comes to light for whatever reason that the car was/is out of the country for more than 30days claiming ignorance is no defence as you signed the contract.

 

[whitenemesis]

Thanks. I already saw all of them. Most refer to lease cars and getting a form similar to a V5 because lease car owners don't have the V5 whereas as a agility/pcp customer I have the V5 in my name.

You may have your name on the V5 but you don't legally own the car.
Will the car require a service during your stay?

 

[kam09]

Mate just take it abroad, pay the 8 payments and the balloon payment then bobs your uncle.. no need to tell them as your planning on buying outright anyway..