get out clauses on a personal car lease??

ascu05

i have a PCP on a vehicle at the moment that is funded by my employer.

If i were to need to get out of the contract for any reason are there typical or standard settlement penalties?

Somone told me that you usually have to pay 1/2 of whatever the remaining monthly payments are.

If it helps the finance is with Lex.

Thanks

peterg1965

Call them and ask for a settlement figure. The settlement is usually the same as settling a personal loan. There will probably be two months interest to pay.

ascu05

i have phoned them and they said that they are posting me figures for me to sell the vehicle or return it to them based on its current market value and mileage.

peterg1965

Did you put down a big deposit? The bigger the deposit the more likelihood that you will have some 'equity' in the car. What sort of car is it?

ascu05

only a 3k deposit on a 42k range rover sport.

I love the car and want to keep it but at £720 i couldnt afford it if something was to go wrong with my job so i am just looking into my worst case scenario so i can budget for it if things go wrong.

peterg1965

Fantastic car, I seriously considered one earlier this year, the diesel HSE. These are still very sought after so used values should still be pretty good, so fingers crossed that you will come out on top. There is a company called swap-a-lease , https://www.swap-a-lease.co.uk that advertise leases to sell to other people. Not sure if the scheme includes PCPs but maybe worth a look if LEX settlement is not favourable.

ascu05

good news, the letter cam this morning saying that because of the low mileage and their current estimated market value of the car on the used market that my amount to pay would be £0.00!!!

As i said before i love the car and want to keep hold of it but my MD at work takes some risks that make me nervous that the place could go bump one day so i am disaster planning.

Thanks for your replies Peter.

peterg1965

Was that a LEX freechoice scheme?

ascu05

peterg1965 wrote:

Was that a LEX freechoice scheme?

yes, i got the quotes from that site and then they referred me on to a local agent who set it all up, i am 15 months into a 36 month contract so i am quite pleased.

I really wanted early termination insurance with it but i got fobbed off by the sales person about it being too complicated and them not having the right FSA permission for insurance, i should have been stronger and insisted but it looks like at this stage it has worked out ok.

peterg1965

Glad it has worked out, Just as well you didnt fork out for Early Termination Insurance.