Giving a Lease car back - what penalty?
 

Anyone any idea what the penalty is likely to be for handing back a lease car early? (Very early!) Only got the car in early July on a 3 year lease, though it may have to go back due to circumstances beyond my control.

Is it 3 months lease cost?

I was faced with the same situation when I leased a P1 for three years. Lost my job soon after and enquired about returning the car. I was told that without some sort of payment protection, I would be liable for the sum of all the outstanding 3 yrs payments if I wanted to return the car early! Either that or declare myself bankrupt and unable to pay.

Needless to say I kept the car.

Good luck!

LC.

I got a quote recently when my Impreza was off the road for 7 weeks with a broken crankshaft.

I was expecting a stunning bill as the car was new in December. Monthly payments for 20,000 miles a year are £370, and I was told it would cost £1,170 to hand it back. A bargan I thought, but car was fixed in time!

Depends really.

When I worked for lease co it's all calculated on the value of the car now, what the loss of the contract will be etc etc.

For example someone had a new 7 series BMW and changed his mind and wanted an 8. The settlement was over £20,000, he had only had the car a month ...

I'm just about to enquire about this myself. I'll be giving a car back after 13 months of a 3 year contract. I'll let you knwo what they say if you're interested with all deatils and costs etc.

Just checked my Lex lease contract and it states under early termination I am due to pay 50% of any rentals unpaid.

i.e if it's a 2 year contract and I terminate after 1 year I'll have to pay 6 months worth of rentals.

I just wish i had my car, I was due to have my Z4 delivered last week but it was written off on a BMW transporter before I even saw it!

eh? :freak3:

My 3 year lease states a minimum amount I will have to have paid in order to just hand the car back (works out to about 2 years worth of payments). If I want to hand it back early I have to pay the difference between what I've paid already and that minimum amount.

It depends on whether it is a personal or a business lease?

Personal leases differ by company but on a business lease you have to pay back the full VAT value of the car as well.

Boggar! I meant 3 year.....waiting for response off company now.

I came across this while browsing this morning, might be an option if you don't fancy the early termination charges..............

http://www.swap-a-lease.co.uk/

These people are helpful and I'm using them now. The lease on my Scooby's going up for sale this week. Anyone can take over the lease (subject to being accepted by my leasing company) if they want it. If anyones interested then PM me and I'll give you the details ie how much has been payed, months left, deposit paid etc....

Hello

So how does that company work? Do you offer the lease at exactly the same amount of money you are paying? Or is it less?

I don't understand why I would want to take over a lease if my monthly payments would be the same if I'd of taken the car myself?

Thanks,

Steve.

It goes like this: You offer your lease to sell or swap with another one, you take over the payments as the other person was. The biggest benefit is that the other person will have paid some of the car off and paid a deposit (if its a contract purchase). Therefore, you get to finish the lease off and make the final payment or hand the car back thus saving a few months of payments and a deposit. For example if someone took over my contract purchase, I paid £2700 deposit and have made £6524 of payments, this was on a £20,000 car 16 months ago. There's 20 months of payments to be made and a balloon payment of £6900 at the end. So if someone takes my lease they get a car with £9225 already paid off or they can just give it back of the lease. If you buy the equivalent car on the same contract pruchase then you'll have to pay deposit and 36 months of payments.....and this way someone would save nearly £10,000 on the purchase price......does this make any sense?!!! If not, the website explains more....