I am just about to start an IVA but have a car on PCP with Mercedes Benz finance - ideally I don’t want to keep the car as it’s not financially viable.
I am no where near the 50% mark for voluntary termination
Does anyone know if because I’m on an IVA will they take the car back?
Most HP and PCP contracts have an insolvency clause, but it is not always acted upon and, of course, the triggering factors differ from lender to lender. Any penalty clause could possibly be added to the IVA with Mercedes Benz as a creditor. The finer points would need to be discussed with MB and with your IP first.
Being a practically new car and a premium marque there is a chance that the creditors would want you to get rid and downsize anyway.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk