Mercedes-Benz Finance

I have a E220 on contract hire from Mercedes, I am half way through the agreement but have been fighting cancer, cannot work and can no longer afford the car. I contacted Mercedes Finance re returning the car and they are happy to take it back but only if I pay all the remaining rentals (6k) which I cannot afford to do, if I could afford that I would keep the car. I asked if there was anything they could help me with and was told to stop paying and they would take me to court for the remainder of the money and costs.

All other contract hire cars seem to have a 50% early termination fee which I could just about afford but Mercedes are the only ones who want the whole lot and have the car back.

If you are thinking of buying a Mercedes I strongly suggest to finance through an independent.

1. Typically the interest rates are 3 or 4 percent above what you can get from loan companies. Sometimes they have offers of loans at very low rates but whatever you do don't get them because although the rate maybe low they take the money out of the deposit you pay so in time the loan actually works out more expensive.

2. PCP is a not worth it because when you enter into a typical agreement for 3 years they overvalue the car at the beginning. The result is that in 3 years time when you come to sell the car all of the deposit you have put in has gone. The result is that you have no equity left in the car to roll over into the purchase of your next one. It is a very expensive way to buy a car.

3. Mercedes Benz dealers are pushed by the Finance people to sell their own loan/PCP products because they get a good commission.

My advice is arrange your loan first never enter into a PCP contract unless you are prepared to loose all your original deposit and don't listen to the Mercedes Benz dealers they are not independent.