End Car lease early

Mark_Slater

Hi I bought a Nissan Qashqai in Jan 2015 on a 3yr deal with an optional balloon payment of about £10k at the end of the deal. I now want to purchase a new Lexus nx300 in time for march 2017. Could I return the Nissan in time to purchase the Lexus? or what are my options?

Mark S

marlot

You say lease, but mention a balloon payment.

It sounds more like a PCP?

In which case, yes, you can exit early. Expect it to dent your wallet though.

iolanthe07

Could I return the Nissan in time to purchase the Lexus? or what are my options?

Why not ask the dealer?

Rain_Shadow

Why do you have to change?

Mark_Slater

Yes it is a PCP rather than a lease. I wanted to get a third opinion before approaching the dealer. It's the potential dent in my wallet that I am worried about. Thanks for your response.

Mark

neilmcl

Rain_Shadow wrote: »

Why do you have to change?

I imagine he doesn't "have" to, he merely "wants" to, which of course isn't anyone's business but his own.

neilmcl

Mark_Slater wrote: »

Yes it is a PCP rather than a lease. I wanted to get a third opinion before approaching the dealer. It's the potential dent in my wallet that I am worried about. Thanks for your response.

Mark

So you're nearly 2 years in, how much has been paid off from the full finance agreement? You could potentially VT the Nissan if you've paid over 50% of the total amount.

I'd speak to your Nissan dealer and see what they say.

hawkeye9999

The Lexus dealer may take the Nissan in as Part-Ex paying off the outstanding Balance.

If the car is worth more, you should be able to use it towards your deposit, if not you might have to contribute towards clearing the finance.

motorguy

Mark_Slater wrote: »

Yes it is a PCP rather than a lease. I wanted to get a third opinion before approaching the dealer. It's the potential dent in my wallet that I am worried about. Thanks for your response.

Mark

As per all the above answers already - you could possibly VT if you've passed the 50% marker but I doubt it at this point in the PCP.


It will cost you massively to do this. PCP deals work "best" when you let them run to end of term or very close to it (and you VT).


I would say it will cost you maybe a further £3-5000 to get out of the deal, on top of the deposit you put in, and the payments you've made so far, not to mention the £5,000-£10,000 you'll lose as within the first year of ownership of the new car.


On the plus side, theres an easy £3,000-£4,000 profit for the dealer in your trade in if he retails it, plus another £3,000-£4,000 profit in the car you're buying off him, including the kickback the dealership will get from the finance company etc.


I'd strongly recommend getting to the dealer before close of business Dec 24th, as you'll really make his Christmas.


I take it you've had a lottery win / inheritance windfall?


EDIT: i'm not trying to be a smart !!! with the above, just be ready for the sorts of figures you're going to be out so as not to turn a blind eye to them. Sadly, I've stupidly done deals like this in the past, so speaking from the voice of experience....

Mark_Slater

you are right Neil, I want to....

Thanks

Mark_Slater

Thanks Paul,

Ha, no lottery win here, though I might actually play tomorrow.

If I was single with no kids, I'd change a car every year...lol

I just think 3yr is too long and shorter options too expensive, so it seems.

I'll willing to take a hit of no more than maybe £2k, subject to approval from the boss (aka the mrs). Which means I'll have to spend much more than that to get her onside.

I might approach a Lexus dealer first and see what they put in front of me.

Thanks
Mark