Getting out of a car lease

nickimcl

We are 8 months into a lease and pay £310 per month.

Our financial situation has changed and we can no longer afford this, the lease company will not allow us to downgrade.

If we sell the car, we won't make enough to pay off the finance.

Where can we go from here? What would happen if we simply stopped paying?

Hintza

They will have a termination clause in their contarct (6 months payments?).

If you stop paying they will take you to court, you want to try and sort this out, it could become nasty (do you have a house?).

nickimcl

Right, so that's not an option then? We do own our own house. What would happen if it went to court?

So the best option is to sell the car on then. Can you sell on a car that has finance?

Quentin

You won't be allowed to sell it under the terms of a contract hire lease (if you attempt it, it will show up on the HPI check).

If you have a finance lease then you can sell it, though make it clear to the purchaser from the outset so he doesn't (wrongly) smell a rat by discovering it himself! (When selling, the proceeds may not clear the amount owing on the lease, meaning an extra payment from you to the finance company)

Hintza

The car isn't your to sell (unless it specifies it in the contract that you can). You need to speak to the lease company and see what options are available to you. This WILL cost you money all you have to do is try and minimise this loss.

If it goes to court you have assets (house and contents) and they will pursue you.

Are you sure you are on a lease and not another sort of deal?

Chippie

Might be worth trying to find out if you can sell the lease (ie assign it to someone else) but then you'll have to find that person. What kind of car is it?