Getting Out of a Car Lease Early Uk

How to get out of your lease early

So, you want or need to get out of your vehicle lease before the contract ends? You may have the right to end your agreement early; however, depending on how far through the lease you are, the financial consequence may be severe.
Remember: a financed vehicle purchase or PCP (Personal Contract Purchase) is different from a lease, so if you have taken out a PCP, follow these links on ways you can terminate your PCP early.

Read on for ways you can terminate your vehicle lease agreement.

What if I just want a change, or don't need the car anymore?

If you can still afford the cost of your lease, but your circumstances have changed and you wish to end the agreement, there are several options you can take.

Early termination

This tends to be the costliest of your termination options, as it involves paying your leasing company, in a bulk sum, the remainder of the money you owe them for the rest of the lease. This is called an 'early termination fee' (more on this further down), set by the leasing agent, and it will have been laid out in your contract. The easiest way to find out how much this will be in your specific case is to call your leasing company and discuss it with them.

What is a Termination Quote?

This is the quote you will receive if and when you request early termination from your leasing company. It constitutes the amount you will have to pay to end the agreement early.

How Are Termination Fees on Car Leases Calculated?

This can vary from contract to contract. As a general rule, early termination fees are approximately 50% of the outstanding payments.

Will Ending My Lease Early Hamper My Credit Score?

Getting into any debt will affect your credit score – especially when you are struggling to meet your monthly repayments.

But, remember, leasing with bad credit history isn't impossible. Speak to our customer services team to find out more. There are also many resources available on our website about choosing the best car for your budget.

What Are My Cancellation Rights When Leasing A Car?

This will depend on the contract you signed with your leasing company and any good leasing company will be completely transparent about their terms.

If you have further questions about potentially ending your current lease, then please do contact our team here.

Can anyone else drive my vehicle?

We believe in providing flexibility for our customers, which means our vehicles can be driven by a wide range of people:

• Business users
  Company employees, employee's spouses, partners and immediate family (children, siblings, parents etc.), as long as they meet the driver-eligibility criteria.
• Personal users
  The driver, their spouse or partner and immediate family (children, siblings, parents etc.), as long as they meet the driver-eligibility criteria.

Below is the Fuel & Go driver-eligibility criteria:

• All drivers must be aged between 21-70.
• They must be in possession of a full UK/EU driving licence that has been valid for at least 12 months.
• Drivers must not have more than two own-fault claims in the past 24 months.
• Anyone using the vehicle cannot have more than 6 points on their driving licence.
• They must not have received a driving ban in the past 60 months.
• Drivers must not have been advised to stop driving by a medical professional or the DVLA due to a medical condition.

What do you get with the Fuel & Go package?

Our Fuel & Go leasing service ensures you get all the cover you need for your leased vehicle. The key benefits of the package include:

• Guaranteed Maintenance & Breakdown – access to a 48 hour relief vehicle if it can no longer be driven, or is left by the roadside.
• Shortfall Protection – Help with finance arrangements if the vehicle is written off.
• Accident Management – All accident claims are processed by a dedicated team.
• Own Damage Protection – Repair cost related to accident, fire, theft and more are covered.
• Glass Protection – Body glass and windscreen are covered.
• MID updates – Regular and complete Motor Insurance Database updates.

All you have to do is add fuel and enjoy making the most of your leased vehicle.

What isn't included in the Fuel & Go package?

At the moment Arval, the funder for our Fuel & Go package, doesn't cover for personal injury for the named driver. Any passengers would be covered under 'third party' within the policy. Personal belongings are also not covered within the policy

What are the pros and cons of leasing vs buying?

Not only does leasing offer great flexibility and peace of mind, you won't be left with a vehicle facing negative equity when your contract is up. What's more, due to the financial flexibility, leasing often means you can drive a newer or higher spec car than you would have been able to afford if paying outright..

If you settle the contract early, you will be required to pay a termination fee.

If you exceed your agreed annual mileage allowance, you will be required to pay an excess-mileage fee.

At the end of your contract, you will be required to pay for any damage to the vehicle, with the exception of "fair wear-and-tear".

To learn more about the benefits of leasing, our guides section has more indepth articles.

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Getting Out of a Car Lease Early Uk

Source: https://www.leasingoptions.co.uk/advice/costs/how-to-get-out-of-your-lease-early

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