Car Leasing agreement

IzzyUK_2

Hi All

Bit of a strange one...

Does anybody know of a way of getting out of a car leasing agreement early without getting absolutely clobbered with hefty charges???

I have a car on a 3 yr lease and the first year is just up.

Any advice would be much appreciated

IzzyUK

DavidHM

Not really although depending on the size of your deposit, it might not cost as much as you think as there may still be equity in the car.

The s.99 Consumer Credit Act protection (right to hand back without further costs) only applies to consumer credit agreements and only once you have paid half the total credit price. A lease is not necessarily a consumer credit agreement and in any event, even with a personal contract purchase (PCP) you are unlikely to have paid half the total credit price after only a year due to the fact that most have relatively low deposits and a large amount outstanding at the end of the term.

IzzyUK_2

mmmm.. looks like I will get panned then :-(

£25K car...

Thanks for the information David

peterg1965

IzzyUK look at the site https://www.swap-a-lease.co.uk you may be able to 'sell' your lease onto someone else if the settlement penalties are too high. What sort of car is it and what are the lease details? (deposit, mileage etc).

IzzyUK_2

Hi Peter

Audi A3 2.0T Quattro fully loaded 20K miles

IzzyUK_2

sorry deposit was around £2K - lease is direct with Audi Finance

IzzyUK_2

could reallt do with offloading it of possible love the car but circumstances and priorities have now changed and really need to get rid of the monthly burden....

DavidHM

At a guess, I reckon you're looking at £2k - £3k to get out of that lease, depending on what the monthly payment is

But it is only a guess so ask the finance company.

IzzyUK_2

Monthly payment runs at around £600...

IzzyUK_2

Does anybody have any experience with Audi Finance and what their position would be on selling the lease on ???

DavidHM

Seriously, ask them. But the odds of you finding someone willing to pay £600 per month to lease your car are going to be slim to zero.

£2k deposit + (36 x £600) = £23,600

You could have bought one outright for that sort of money, without the extras, and sold it on relatively easily.