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Mercedes Contract

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smurfchops | 12:23 Mon 01st Mar 2021 | Motoring
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I have had an ongoing two year contract for a around seven years. I have now been told my contract is in arrears and I have to pay for another year £35 per month, for today’s service. I cannot believe this is in arrears and am sure I always paid in advance when I first took out this contract. Can anyone help please? Also I have another year to go on this contract, if I cancel it after this service, would I have to pay a fee? It is all very confusing ...

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What does your contract say about early termination? I would be very surprised if you don't have to pay a fee to do this.

What contract do you have? Mercedes offers a choice of contracts.
Question Author
It’s a service charge for A and B services, either an A or B service once a year. Can’t find initial contract, not sure if I was ever given one.
So not a lease contract?
Question Author
The car is not leased. I found a service contract online. Last time I phoned Mercedes they said the service payments were in arrears, but the contract says payments in advance. How would I go about having a conversation with them on the phone? I just want to stop paying them every month and start going to another cheaper garage for servicing, as the car is getting old now.
Service contract terms and conditions state:
"The Customer has the right to end their contract with MercedesBenz Cars at any time. If the Customer ends the contract before
its expiry, other than due to a breach of the contract by
Mercedes-Benz Cars, the Customer shall be refunded all
payments received from them, less any costs incurred for
servicing work already completed and minus a reasonable
administration fee of £40 plus VAT.

On the ending of the contract, however that may occur, the
Customer shall remain liable for all sums outstanding at the point
of ending the contract for services completed before the ending
of the contract by Mercedes-Benz Cars or Retailers. The
Customer shall make payment immediately of any such
outstanding sums on the ending of the contract."

Phone them up and ask them how and why you are in arrears. It is pointless us speculating.
Phone numbers:
Monday to Friday 8.00am - 6.00pm
Tel: 0080097777777
Tel: 02076609993
Question Author
Thanks Barry. Did you see in the contract where it says payments in advance?
Not really, it says payments can be made in full by debit or credit card, or monthly by direct debit.
'I have had an ongoing two year contract for a around seven years' I don't really understand this - Do you mean a servicing contract for two services a year?

What amount (presumably per month) were you paying and what are they saying you owe?
I think smurf means he had a two year service plan which he has renewed several times
Question Author
Yes Barry that’s right. Thanks for your help. I found a service contract online where it says money paid in advance so will ring them tomorrow. Thanks again.
I'll be interested to know their explanation, smurfchops
When did the contract begin? Do you pay monthly or annually? What do your bank statements show?
Is the contract you found, the latest one? The terms might have change since the initial contract.
Let's face it...only Mercedes own staff can answer smurf's questions.
Question Author
I spoke to someone at Mercedes today who said I am paying in advance, so the other guy I spoke to last time must have got it wrong..... thanks for your help guys.

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