Lease car - Hand car back early

[ohwhatalad]

hi all, i got a car in march 2013 with hippo car leasing.
im not sure what type of contract i am under and can anyone advise on handing the car back early or swapping?

it is a 4 year lease, i am just over 2 years into the lease with no missed payments but looking for a cheaper car now i have moved into my own house i cannot afford this one.

so either want to get a smaller loan and finance a cheaper car or swap this for a cheaper one.

i have sent several emails over past 2 months to hippo with no reply to my questions above.

i have attached the documents i signed before i took delivery of the car - it is in my mums name and i am c/o as my credit wasnt good enough to get it in my name.

[ohwhatalad]

Re: Lease car - Hand car back early

any advice on options anyone ?

[ohwhatalad]

Re: Lease car - Hand car back early

Can i use the VT option on this? How far into the contract 50% will i need to be to walk away with no fees/charges anyone? as nothing is written in my contract above/attached that i can see? thanks

[ohwhatalad]

Re: Lease car - Hand car back early

What is 50% of my total hire please guys so i can try the VT option, is it the 24k of the total car including interest and the buy out option, or is it the 18k cash price? i have paid around £9k thus far

[des8]

Re: Lease car - Hand car back early

I'm not into the different ways of financing vehicle purchase, but in view of the lack of response you have had I'll give my pennyworth and bump this up for you.

It seems to me you don't have the right to VT this arrangement as you don't have a lease agreement.
You have purchased the vehicle with a Fixed Sum Loan Agreement which does not allow for early cancellation.
I believe however that this allows you to sell the car, and with the proceeds (if sufficient) you could pay the loan off early.
If you do this the amount to be repaid would be the total of the outstanding monthly payments, less a rebate for early repayment.
Others might be along to correct me

[Kati]

Re: Lease car - Hand car back early

Maybe [MENTION=7]Tools[/MENTION] will be able to help?

[ohwhatalad]

Re: Lease car - Hand car back early

Hi it defiantly isn't a purchase loan. It's a hire purchase type thing because they said to own the car I needed to pay a balloon payment at the end or give the car back. And they also suggest I have 10k per year mileage allowance.
It really is a very low information type agreement though I was very surprised although I do have all emails between me and the sales woman who set the agreement up.

[des8]

Re: Lease car - Hand car back early

What they said (do you have it in writing) and what you posted up seem to me to be in contradiction.
Wait to see what others more knowledgeable have to say

[ohwhatalad]

Re: Lease car - Hand car back early

It says on the agreement above regarding the mileage allowance and end term balloon payment too? Yes I have many emails in writing from applying to car delivery date so plenty of evidence

[Tools]

Re: Lease car - Hand car back early

Unfortunately I'm not the best person to ask, however, I would recommend reading through this thread http://www.legalbeagles.info/forums/showthread.php?34548-Voluntary-Termination-of-a-Hire-purchase-or-conditional-loan-under-the-CCA-1974
It's long but I'm sure the answers will be in there.

[des8]

Re: Lease car - Hand car back early

It says on the agreement above regarding the mileage allowance and end term balloon payment too? Yes I have many emails in writing from applying to car delivery date so plenty of evidence

I might be naive but your post seems not to include a lease agreement, just an ORDER FORM for a vehicle with brief details of how it is to be financed.
Surely a lease agreement will contain a number of clauses detailing the terms of the lease eg , whose responsible for maintenance, fuel costs insurance etc details concerning early termination etc and be signed by both parties to create a binding agreement?

[ohwhatalad]

Re: Lease car - Hand car back early

Your right. I didn't get a copy of any other agreement. They made me and my mum sign upon delivering the car but I think that was just to confirm mileage of car and confirm payment of admin fee for delivery. =/ I've emailed hippo leasing lots of times with no reply.
They are a leasing company so I don't think they have tried to sell me a car.

[des8]

Re: Lease car - Hand car back early

I'm also now thinking they were leasing you a vehicle but have fouled up on the paperwork.
To me it seems you have in fact bought a car with the aid of a Barclays loan.
However as I said earlier I'm not into finance and only answered your thread to bump it up, having seen what seemed to be inconsistencies.
I hope someone else can help

[ohwhatalad]

Re: Lease car - Hand car back early

YOU WERE RIGHT!
It is a standard purchase loan from barclays secured against the car. They've sold me it! Lol

Total finance took from Barclays - £24,657.56 inc interest etc

£14727.81 is todays settlement figure,

am i correct in thinking i can VT the car once ive paid another £2399, moving me to the 50% total paid point?

[DirtySmurf]

Re: Lease car - Hand car back early

From what was said above I don't think so.... as this is a purchase and NOT a hire or lease agreement. From what I know you could sell the vehicle and pay off the remaining finance provided the car is worth sufficient amount to do so.