Mercedes Voluntary Termination

[wallina]

I wonder if anyone can help.

I want to terminate my Mercedes lease after 3 years and 1 month (11 months to run). Is the 50% point the actual calendar point of the agreement, i.e. anything after the 24th month? Or is is 50% of the way through the total cost of credit?

I terminated on the 29th January, I gave them 14 days notice and stated I'd charge £50 per day storage thereafter. they stalled and didn't respond initially, I chased them up and was asked to sign an agreement (I refused). Since the 9th Feb I have told them they are accruing the £50 per day but how enforceable is this? Is it a reasonable amount? I plucked the number out of thin air really.

They are now claiming I owe them £2k as this would take me to the 50% by total contract value, is this correct?

Any help would be appreciated.

[Amethyst]

Re: Mercedes Voluntary Termination

The 50% is 50% of the total credit.

So need to know the figures off your agreement. Is it an agreement with a big balloon payment at the end ?

( eg total credit £20k, no advance payment, you pay £600 a month over 20 months then a £10k buy out or return the car at the end) - your 50% would be when you have paid £10k (half the £20k) - so about month 18 )

[wallina]

Re: Mercedes Voluntary Termination

Thanks for the response.

Amount of credit was £44,576
APR 5.8%
Total cost (over 48 months) £51,992.49

I have paid a total of circa £23k and they are claiming I need to pay at least £25,996 to VT

[Amethyst]

Re: Mercedes Voluntary Termination

Did you pay a deposit ( advance payment) ?

[wallina]

Re: Mercedes Voluntary Termination

I didn't pay any deposit.

- - - Updated - - -

What do you think about the storage charges I have levied?

[Amethyst]

Re: Mercedes Voluntary Termination

Okay. They are correct - you will owe the other 2.5k odd.

The figures should be printed on the credit agreement under the termination section ?

[Amethyst]

Re: Mercedes Voluntary Termination

mmm not really my thing I'm afraid. Particularly as you do appear to have terminated early. Have they accepted the termination ? or they won't accept till you have paid over 50% ?

[wallina]

Re: Mercedes Voluntary Termination

they won't accept it until I pay the difference.
I'm guessing now I might as well keep the car for 3-4 more months and then hand it back, if I have to pay I may as well have the use of it!

[R0b]

Re: Mercedes Voluntary Termination

Just to be clear so no confusion, to VT it is 50% of the total amount payable which includes the interest added (totol credit might be an amount without interest) so Amethyst is right you need to pay 50% of £51,992.49 before you can terminate the agreement.

So your only option is to pay the difference now or wait until you have reached that point and then VT.