Cancelling a Car Lease

Fridge03

Hi guys,

Some help would be hugely appreciated!

Basically, I feel the time has come to get a car without having to worry about warranties and servicing etc. I've done the maths and getting a car on PCP or HP will potentially work out better for me (depending on what I go for obviously).

I've got a steady job, my budget is in check. However, if the worst happened and I lost my job for example. If I needed to get out of the contract/agreement what is the usual kind of process and issues/fees involved?

I've not ventured into this before so just want lots of advice before I finally make up my mind.

Cheers

zeon999

The norm for cancelling cars on contract hire is you would have to pay 50% of the remaining repayments.

So if you have say 10 months left and you normally pay £200 a month you would owe approx £2000.

They do vary slightly so you would need to check with the company you go with.

Which I would suggest checking www.lease-hire.co.uk my mate Dean works there in the sales department.

[Deleted User]

Probably bad advice, but if you lost your job and could no longer afford it, just park it up and wait for the Repo man to come and collect it in your sleep.

Life is too short to stress over debt.

albionrovers

It could come down to brand rather than lease company.

I've leased BMW, Audi and Honda and all 3 deals have been slightly different in terms of company rules and regulations.

albionrovers

Deleted_User wrote: »

Probably bad advice, but if you lost your job and could no longer afford it, just park it up and wait for the Repo man to come and collect it in your sleep.

Life is too short to stress over debt.

Yip, terrible advice.

zeon999

albionrovers wrote: »

It could come down to brand rather than lease company.

I've leased BMW, Audi and Honda and all 3 deals have been slightly different in terms of company rules and regulations.

Yeah it would depend on which finance company has under written the deal apposed to which leasing broker you got the deal from.

Though if this is of interest to you you could simply confirm before signing any deal contract.

Fridge03

Thanks for the help guys

Think I'm set, now just got to find the right deal. I'll check everything before hand. I should be safe anyway work and income wise but best to be sure!

C_Mababejive

Deleted_User wrote: »

Probably bad advice, but if you lost your job and could no longer afford it, just park it up and wait for the Repo man to come and collect it in your sleep.

Life is too short to stress over debt.

Having watched the repo man on TV,i was left wondering how the finance is settled when he comes and takes your car? Presumably they flog it for what they can get then pursue you for any shortfall. You also get a black mark on your credit history ?

Rain_Shadow

zeon999 wrote: »

the norm for cancelling cars on contract hire is you would have to pay 50% of the remaining repayments.

so if you have say 10 months left and you normally pay £200 a month you would owe approx £2000.

they do vary slightly so you would need to check with the company you go with.

Which i would suggest checking www.lease-hire.co.uk my mate dean works there in the sales department.

£1,000? .

zeon999

Rain_Shadow wrote: »

£1,000? .

Oops sorry yeah would help if I put the right figure.

albionrovers

Quite, but in my experience 50% is an incorrect assumption anyway.