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Hi
I'm new to the site so, hopefully, I'm abiding by the rules and posting in the right place (I did check!)
I'm in the process of VT'ing my car with Mercedes Finance. I used the template I found on here (thanks, Rob!) and they've come back with the following:
1) I owe them £3.6k, as there's a shortfall. I'm rubbish with numbers, so don't totally understand why, if I'm honest, but I doubt they're wrong about that. I'm only 29 months into a 48 month deal. I've paid £15.8k to date, plus a £3.6k deposit. They say the total amount due at this time is £22.5k. The car's list price was c.£43k, I "paid" c. £34k on a PCP deal. I pay £547 pcm and have paid £19.5k to date. Am I right in thinking that they're after 50% (for VT'ing) of the list price, because that's how they calculate the depreciation? Got to admit I just didn't understand that - I thought I was over half way of the £34k. I could buy the car off them and try to sell privately, but I can't imagine I'd save anything right now (who's buying?!) I have to get out of the deal now because we're over budget on a house build and the credit commitment is impacting our mortgage borrowing potential. Appreciate, I'd be better off keeping the car for another six months, then VT'ing - that's just not an option.
2) They've sent me the following to sign and I don't think I should:
A couple of questions spring to mind and I'd welcome anyone's thoughts...
- I'm assuming that I should refuse to sign the above and just confirm the collection address/date to their agents? Is this a 'VT pack'? I'd already told them I wasn't going to sign one.
- I'm not keen on point 4. My understanding is that I don't need to/shouldn't agree to this, by signing the above. Is that right? I'll be taking LOTS of pics the morning of collection.
- The car has 'diamond cut' wheels, each of which has scuffs, very few of which are deep. Would this fall under 'normal wear and tear', or will I have to cough up for these?
- If they do find any damage, will the fact that I'm under my mileage allowance help offset this - in terms of depreciation? I'm allowed 20k pa and I've done 43k in 29 months. Or should I just not refer to this as it's implicitly confirming there is damage which has impacted its value? Am I better sticking to the 'normal wear-and-tear' argument for everything?
Sorry for the long post and loads of questions. I'd be very grateful for any help. Going to buy outright with a loan next time.
I'm new to the site so, hopefully, I'm abiding by the rules and posting in the right place (I did check!)
I'm in the process of VT'ing my car with Mercedes Finance. I used the template I found on here (thanks, Rob!) and they've come back with the following:
1) I owe them £3.6k, as there's a shortfall. I'm rubbish with numbers, so don't totally understand why, if I'm honest, but I doubt they're wrong about that. I'm only 29 months into a 48 month deal. I've paid £15.8k to date, plus a £3.6k deposit. They say the total amount due at this time is £22.5k. The car's list price was c.£43k, I "paid" c. £34k on a PCP deal. I pay £547 pcm and have paid £19.5k to date. Am I right in thinking that they're after 50% (for VT'ing) of the list price, because that's how they calculate the depreciation? Got to admit I just didn't understand that - I thought I was over half way of the £34k. I could buy the car off them and try to sell privately, but I can't imagine I'd save anything right now (who's buying?!) I have to get out of the deal now because we're over budget on a house build and the credit commitment is impacting our mortgage borrowing potential. Appreciate, I'd be better off keeping the car for another six months, then VT'ing - that's just not an option.
2) They've sent me the following to sign and I don't think I should:
What happens next?
If you wish to terminate your agreement early, you will need to:
1. Complete the fields on the attached form, confirming that you would like to terminate your agreement and where you would like your vehicle to be collected from.
Return the signed sheet to us either by email to XXX with the subject as 'Voluntary Termination', or alternatively you can send it via post using the pre-paid envelope enclosed.
Please note that on sending us confirmation you would like to Voluntary Terminate your agreement with us, you must have your vehicle ready for collection, it is your responsibility to insure the vehicle up to the point of collection. British Car Auctions (BCA) will contact you within 5 working days of the agreement termination, to arrange a suitable collection date.
If you are not ready to return the vehicle immediately, you may wish to delay returning this document until you are in a position to terminate the contract and release the vehicle.
2. Pay the shortfall outlined earlier to bring your total payment to half of the total amount payable. Please note we can only accept payment for the shortfall upon termination of your agreement.
How do I arrange collection of my vehicle?
1. Once we receive your signed confirmation sheet, XXX will contact you to arrange a convenient collection
time.
2. If you need to change the date of the vehicle collection you must call our Agents at XXXXXXX at least two working days before the previously agreed collection date. Please note that
if you request to change your collection date less than two working days before your preagreed collection date, there will be a cancellation charge. To find out what this amount will be, please call the number above.
3. An Inspection Agent will review your vehicle at your home or work address and record the mileage before it leaves your premises. The Inspection Agent will explain any damage charges that are outside the return standards. Should you exceed your contractual mileage, you may be charged following your inspection.
4. Your vehicle will then be taken to our inspection centre for a more detailed review by an engineer, which may result in further charges. To help you prepare for the hand back of your vehicle, we have included a checklist for you to consider. We would recommend that you read through this prior to your collection.
Voluntary termination - confirmation
Please ensure:
. that you complete and return this page to us either by email to customerservices-mbfs@daimler.com with the subject as 'Voluntary Termination', or alternatively you can send it via post using the pre-paid envelope enclosed.
Termination of your agreement
To terminate your agreement under the 50% rule, please sign below.
I understand that by voluntary terminating my agreement, my credit file will be updated to reflect this and other lenders can view this information. I agree to stop using the vehicle with immediate effect as
Mercedes-Benz Financial Services has withdrawn its consent. I also understand that my vehicle needs to be ready for collection when BCA contact me to arrange collection within five working days of
termination. I understand I am responsible for insuring the vehicle up to the point of collection. I also understand that I will be liable for any damage or pro-rata excess mileage charges after inspection of the
vehicle.
Print name: :
Signature: Date:
Collection arrangements
Our collection agents at BCA will contact you to arrange a convenient time to collect your vehicle.
Please provide details of the address that your vehicle should be collected from, a contact name and a daytime telephone number to arrange collection.
Address:
Contact name and telephone number:
If you wish to terminate your agreement early, you will need to:
1. Complete the fields on the attached form, confirming that you would like to terminate your agreement and where you would like your vehicle to be collected from.
Return the signed sheet to us either by email to XXX with the subject as 'Voluntary Termination', or alternatively you can send it via post using the pre-paid envelope enclosed.
Please note that on sending us confirmation you would like to Voluntary Terminate your agreement with us, you must have your vehicle ready for collection, it is your responsibility to insure the vehicle up to the point of collection. British Car Auctions (BCA) will contact you within 5 working days of the agreement termination, to arrange a suitable collection date.
If you are not ready to return the vehicle immediately, you may wish to delay returning this document until you are in a position to terminate the contract and release the vehicle.
2. Pay the shortfall outlined earlier to bring your total payment to half of the total amount payable. Please note we can only accept payment for the shortfall upon termination of your agreement.
How do I arrange collection of my vehicle?
1. Once we receive your signed confirmation sheet, XXX will contact you to arrange a convenient collection
time.
2. If you need to change the date of the vehicle collection you must call our Agents at XXXXXXX at least two working days before the previously agreed collection date. Please note that
if you request to change your collection date less than two working days before your preagreed collection date, there will be a cancellation charge. To find out what this amount will be, please call the number above.
3. An Inspection Agent will review your vehicle at your home or work address and record the mileage before it leaves your premises. The Inspection Agent will explain any damage charges that are outside the return standards. Should you exceed your contractual mileage, you may be charged following your inspection.
4. Your vehicle will then be taken to our inspection centre for a more detailed review by an engineer, which may result in further charges. To help you prepare for the hand back of your vehicle, we have included a checklist for you to consider. We would recommend that you read through this prior to your collection.
Voluntary termination - confirmation
Please ensure:
. that you complete and return this page to us either by email to customerservices-mbfs@daimler.com with the subject as 'Voluntary Termination', or alternatively you can send it via post using the pre-paid envelope enclosed.
Termination of your agreement
To terminate your agreement under the 50% rule, please sign below.
I understand that by voluntary terminating my agreement, my credit file will be updated to reflect this and other lenders can view this information. I agree to stop using the vehicle with immediate effect as
Mercedes-Benz Financial Services has withdrawn its consent. I also understand that my vehicle needs to be ready for collection when BCA contact me to arrange collection within five working days of
termination. I understand I am responsible for insuring the vehicle up to the point of collection. I also understand that I will be liable for any damage or pro-rata excess mileage charges after inspection of the
vehicle.
Print name: :
Signature: Date:
Collection arrangements
Our collection agents at BCA will contact you to arrange a convenient time to collect your vehicle.
Please provide details of the address that your vehicle should be collected from, a contact name and a daytime telephone number to arrange collection.
Address:
Contact name and telephone number:
- I'm assuming that I should refuse to sign the above and just confirm the collection address/date to their agents? Is this a 'VT pack'? I'd already told them I wasn't going to sign one.
- I'm not keen on point 4. My understanding is that I don't need to/shouldn't agree to this, by signing the above. Is that right? I'll be taking LOTS of pics the morning of collection.
- The car has 'diamond cut' wheels, each of which has scuffs, very few of which are deep. Would this fall under 'normal wear and tear', or will I have to cough up for these?
- If they do find any damage, will the fact that I'm under my mileage allowance help offset this - in terms of depreciation? I'm allowed 20k pa and I've done 43k in 29 months. Or should I just not refer to this as it's implicitly confirming there is damage which has impacted its value? Am I better sticking to the 'normal wear-and-tear' argument for everything?
Sorry for the long post and loads of questions. I'd be very grateful for any help. Going to buy outright with a loan next time.
