Voluntary Termination of PCP

[Kazzyj]

Due to COVID-19, I find myself unemployed and unable to find work.
*I have taken a 3 month payment holiday with Mercedes but the amount of the monthly payment will increase to an unaffordable level, especially if I’m still out of work.
I want to hand the car back and walk away. I’m 16 months into the agreement and paid a £5k deposit plus I’ve made 16 x payments of £435. The finance company have said to VT I need to pay them over £9,000 & hand the car back. I can’t afford to do this. Any advice would be most welcome.*

[R0b]

Hello

Going to need more details around the contract terms.

1. What is the total contract term?
2. What's the total price payable under the contract?

You should be able to find the two on the front page of the contract or the summary page. If you do indeed owe £9,000 to make up the 50% then that is not a condition to ending the contract under voluntary termination. You can terminate at any time before the final payment becomes due, but if you haven't met the threshold then you still owe Mercedes the difference - but to be clear, payment is not a prerequisite to termination.*

Once you've provided the above answers, I can give you some possible options.

[Kazzyj]

Hi Rob

The contract term is 48 months. The early settlement figure is £23,864. Does this help? I have been recommended by the finance team to px at the dealership for a cheaper car but the salesman has said Merc finance don’t accept negative equity and that shouldn’t have been suggested, even though they did this when I swapped my Audi in. I’m having a meeting with him tomorrow. I’m hoping this is so he can tell me something that won’t be recorded on the phone.*