MB Finance

[Sym7]

I have a C-class on a 48 month lease coming up to it's half way point. I want to hand the car back. I had heard somewhere that after 50% of the lease period, by law, you have the right to simply hand the keys back without a financial penalty. Is that true? If not, do I have any other option at 50% of the lease period?

If anyone knows I would be very grateful.

Thank you.

[PurpleMoonlight]

I think it's 50% of the payments due actually, but your lease contract should state this if you look.

[Andy_GSA]

If the agreement is regulated by the Consumer Credit Act (and it will say something to that effect on the top of the agreement) then it will also set out how you can terminate it. Typically this is when you've paid 50% of the total amount payable under the agreement. You would be voluntarily terminating the agreement which normally requires termination in writing, you can't just rock up to a MB dealer and leave them the keys.

To be honest I can't remember if the same rights apply to a lease as opposed to a lease purchase, but it will all be in the agreement. If it's not a regulated agreement then the above does not necessarily apply!

[Mr Car Finance]

The voluntary terminations relate to Purchase agreements such as Hire Purchase and do not qualify under the Hire agreements such as Personal Contract Hires and Op Leases. If you are paying VAT on your rentals the chances are you are in an Op Lease with MB Finance, if this is the case you are not able to Voluntary Terminate your contract. If you are in an HP with a balooon or a PCP when you can voluntary terminate if you have paid 50% of the total amount payable under the terms of the agreement.

Please bear in mind that the finance company will pro rata the mileage at termination and can excise their right to charge excess mileage charges as well as recharging for above fair wear and tear damage to the vehicle. You have to notify the finance company in writing and you will need to sign an inspection sheet upon collection or drop off of the vehicle. You will still be liable for any payments until the return condition and termination costs have been agreed between you and the finance company.

Good luck

[Sym7]

Thanks guys.

[Olf]

MB Finance are complete feckers on car condition. Make sure you get any damage rectified by an MB shop and take lots of photos. Utter bar stewards. Never again.

[TVR1]

Olf said:

MB Finance are complete feckers on car condition. Make sure you get any damage rectified by an MB shop and take lots of photos. Utter bar stewards. Never again.

Why? MB follows the BVRLA guidlines on damage and fair wear and tear. Besides, the main reason people VT is because the value of the car is so far below the settlement figure at that point that it would be stupid to keep the car. Or are you suggesting MB and other Finance companies should not be able to mitigate some of their loss, when the vehicle is eventually sold?

[Olf]

TVR1 said:

Why? MB follows the BVRLA guidlines on damage and fair wear and tear. Besides, the main reason people VT is because the value of the car is so far below the settlement figure at that point that it would be stupid to keep the car. Or are you suggesting MB and other Finance companies should not be able to mitigate some of their loss, when the vehicle is eventually sold?

If by mitigating their loss you mean: Arguing for weeks about the quality of the factory original paint whilst essentially suggesting I'd had both (entire) sides of the car re-sprayed and also arguing for weeks about a very small bump on the rear bumper which was repaired by a mercedes body shop. Also wanting £250 to fix the plastic under tray that had come loose (unbeknownst to me) because it's plastic st held together with a couple of plastic rivets. I know this becuase by B class now has exactly the same problem - fortunately it's under a co. car scheme so it's fixed free of charge without a murmur.

Go near MB finance at your peril people. Buffoons and rip-off merchants. Lesson learned.