Getting out of my Car lease

[Manda1980]

Hi
I need to cancel my lease for my car I just cant afford it going forward.

I have enough to cover my first year payments.
It was a 2 year lease 23 payments.

I have never missed a payment, I want to end my lease and pay up in one lump sum to cover the first year so this would be 50% of the total amount payable?

My total amount payable was first payment of £717.58 and 23x238.86 = £6210.36 - so I would assume 50% is £3105.18 so is this what I owe the finance company?

Or there is a section on the agreement stating termination rights, stating I owe £10535 - Do I need to pay 50% of that?? but that's more than my whole agreement!

Any advice would be gratefully received.

Thanks

[Manda1980]

Re: Getting out of my Car lease

ok I think I have figured its 50% of the 10k thanks

[R0b]

Re: Getting out of my Car lease

Hello Manda, just so you are aware, you cannot terminate the agreement and only be liable for 50% of the total price payable if it is a lease. You are only able to exercise that right under hire purchase or conditional sale agreements or a personal contract purchase.

Getting out of a lease is usually much more expensive.

[Manda1980]

Re: Getting out of my Car lease

Hi I have a hire purchase agreement. But I am liable for the large amount I mentioned above?

Thanks

- - - Updated - - -

to clarify I have a PCP

[R0b]

Re: Getting out of my Car lease

Without seeing the lease it is difficult to understand what you owe. Generally there will be a box which tells you the total amount payable under the agreement. If you then divide that by two then that is how much you need to pay. Equally there is also a box which should say "Termination: Your Rights" and that will explain that as long as you have paid X then you owe no more.

[Manda1980]

Re: Getting out of my Car lease

Hi thanks for getting back to me.
The total amount is £6210.36 for the full 2 years - with the option to buy at the end. half of that is £3105.18 which it what I thought I would need to pay before terminating the agreement.

but when I look at the termination your rights, it states that half of £10535 needs to be paid? but that much more than the agreement is! so I'm confused.
I'm happy to send to you if you want a look? I had been reading other peoples posts and thought I had sussed it out, now i'm a bit stuck

thanks
Amanda

ps the £10535 is half of the amount if I chose to purchase the car at the end

[R0b]

Re: Getting out of my Car lease

When you terminate voluntarily the total price is calculated as being the total credit including interest, any deposit and option to purchase. So if that all comes to £10,535 as it says in the termination box, then you need to pay £5,267.5 to absolve yourself from any further liability.

You can of course give notice to terminate before you pay as there is no legal requirement to pay 50% before terminating but lenders will expect full payment or there is a possibility that they could take you to court over it and obtain a CCJ. your defence in that is they have to adhere to FCA rules and if you are unable to properly afford the amount they should consider taking reasonable instalments. Therefore if you can pay a good chunk off and then leave a smaller amount outstanding you could try to come to an agreement to repay the remainder in 3/6/12 months and clear the debt without the need of court.