Finance contract- relative deceased

[Querty12345]

Hello will keep it short as possible

My grandmother passed away recently and had a Mercedes on finance. She has always done the part ex then the rest on finance with her cars. Her car dealer person knew her well and knew she was dieing. She wanted to treat herself to a flashy car for this reason. She got the car about a year and a half ago. My mum is the executor of her will and is making various arrangements. Upon contacting Mercedes they have said that the car is on a 4 year contract. My mum is sure that my grandmother wasn't aware of this( she wouldn't have committed to 4 years as she knew she was terminal)

Is there a cast for Mis selling or something in this case? I'm just wondering on behalf of my mum as she is worried about things and after just losing her mum doesn't need the stress.

[akkakk]

May depend on the type of finance, eg lease v. HP etc.
If arranged through the dealer I would simply drop it off at the dealer and ask for a receipt / confirmation that there is no outstanding payment owed... If they refuse to accept the car back they put themselves in a weaker position...
Generally speaking if your grandmother were still alive and not paying the payments they would repossess the car... So if they have the car back there is probably not a lot left they can do...

[Berthatydfil]

Sorry for your loss
I wouldn't just drop it off at the dealers that would be stupid - depending on the deal it may not actually have been your dgms property so you/your mother/the estate would still be liable for the car /the finance costs.
You / your DM need to know what exact type of finance deal it is on as this will affect how you manage the termination.
If it's a straight loan then you can either pay it off out of the estate if the beneficiaries wanted to keep it or just sell it and pay off the loan. The dealer may well buy it if this is the case.

If it's HP contact the finance company to explain and you should be able to either hand it back with or without paying a balance or pay it off and keep /sell the car. The dealer may be able to assist if it was arranged through them.

If it's PCP personal hire then contact the finance co to explain and you should be able to hand the car back - however there will almost certainly be termination charges to pay. However she may have taken out termination insurance which might cover it. Again if the dealer arranged this they may well be able to help.

But I think you do really need to find out the full details of the finance arrangement before you do anything.

With regard to misselling if your dgm knew she was terminally ill at the time she signed the deal and she didn't disclose her illness or knew she wouldn't live to the end of the arrangement then she's probably in the wrong not them, sorry if this isn't what you wanted to hear.

[Querty12345]

She did disclose it was terminal, she has known the dealer for many years and has arranged her finance on her previous two cars. I will have to go through the contacts in detail, the car is just gathering dust outside her house at present, thank you for your advice really appreciate it x X X

[user1464519881]

It's a debt - what is still owed on the car along with any other debts she has so comes out of her estate. I doubt it was mis-sold but you need to do the sums first - if she paid X per month for the years she had it she has had value for those months and then owes the rest - it is probably not hire purchase but instead some kind of hire with regular payments. You need to read the agreement. Would it have been any cheaper if she had taken on a one year deal? I doubt there are one year deals available and I would be surprised if her executors could persuade the finance company to write off the debt left. It is very likely the contract terms contain a clause about death.

[Querty12345]

Hello, we have had a meeting with Mercedes and they have agreed to it being Mis sold, especially as she has known the dealer for many years. I'm sad to see it go it was her pride and joy, her swan song. But it's all part of the process isn't it I suppose. Mercedes were great, I think possibly something was lost in translation? Oh well! At least we can move on

And thank you for replying X

[Berthatydfil]

Glad you were able to sort it out.