Mercedes Service Contract

[smurfchops]

Can someone tell me, is this monthly payment made in advance or arrears? Can’t find anything online to make it clear. Thanks all.

[gingejbee]

Normally, you'll pay an amount every month for several months (possibly 12) and get the service at the end of the period.

[smurfchops]

Mercedes are telling me I owe for 11 months, as I had a service in January, cancelled contract in February. Sold the car now. Why are they saying payment is in arrears? Doesn’t make sense. I owe almost £500 apparently. Is there anywhere online where it says payment is in advance? Thanks all.

[gingejbee]

OK...if you had a service in Jan but cancelled contract in Feb, does that mean you've only paid one monthly payment? If so, it's no wonder they want the rest of it!
The question is...how much have you actually paid to Mercedes to have the January service? That service will have cost several hundred pounds...have you actually paid that, or just one months aliquot?

[barry1010]

As I understand it the plan requires you to pay a fixed mont hly amount for a set period which starts when you make your first payment.
If you cancel before the end of that period you will owe them either the remaining amount or a pre-agreed early termination fee.

[smurfchops]

I paid £40 per month every month up until February 2023. I have been paying this for years and have been having yearly services every January, and I was under the impression my payments were in advance of my service, and that I had paid for my January service, by making regular payments in 2022.

[barry1010]

Only Mercedes has the answer. Is it an annual contract that you renew each year? If so, do you know the renewal date?

[Zacs-Master]

You had a very similar problem 2 and a half years ago and you said you were going to call them:
https://www.theanswerbank.co.uk/Motoring/Question1742493.html

[barry1010]

Well spotted, Zacs

[Zacs-Master]

Strange eh?

[smurfchops]

Why strange? Still having problems.

[Zacs-Master]

Because you seemed to have already called them and you were told you were paying in advance. It’s the last post on the thread.