• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Voluntary Termination on lease vehicles

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Voluntary Termination on lease vehicles

    Hi Lingus here, new member and a confused one too
    on what my rights are on my lease Skoda. I’ve read
    many replies on what to do with PCP/PCH, HP but
    not for lease contracts.
    I called Skoda finance today and said I would like to
    return car under VT but lady said it is called Early Settlement and carries a fee of 55% of the outstanding
    rental. I need clarification on what I can say to them,
    my rights as I think they may trying it on.
    Tags: None

  • #2
    Hello

    A PCH is a lease and vice versa, it's simply a long hire period albeit the name and terminology is different. You have no voluntary termination rights under a pure hire agreement. Assuming you've read my VT Guide (link here), you'll notice that Section 99 says "... the debtor under a regulated hire-purchase or regulated conditional sale agreement shall be entitled to terminate the agreement by giving notice ..."

    As you can see, the right to terminate says hire-purchase or conditional sale agreements only - there is no provision for VT on a lease or PCH on the same basis. There is, however, a right to terminate a hire agreement but is subject to certain conditions:-

    1. the hire agreement must not terminate less than 18 months.

    2. the right to terminate the hire agreement does not apply to agreements where:-
    a. the total payments exceed £1,500 per year; and
    b. the goods are hired for business purposes.

    In relation to lease agreements, hirers tend not to be able to terminate the agreement at the 18 month stage because their rental payments usually exceed the annual £1,500 cap and so the criteria is not met. If your rental payments in a 12 month period are less than £1,500 per year then you could rely on this but the agreement must run for at least 18 months.
    If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
    LEGAL DISCLAIMER
    Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

    Comment

    View our Terms and Conditions

    LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

    If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


    If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
    Working...
    X