I regret taking a car lease, can I cancel?

Ciwan

Hello everyone

I wish to be debt free as I am really fed up of being in debt and the stress it is putting on me and my family. I wish I had made the decision a year ago when I took out a lease on a car. I am currently £50K in debt (excluding mortgage).

Is it possible to cancel my lease on the car? It was January 2017 that I got the car.

Any help and advice would be greatly appreciated.

Thank you.

HairyHandofDartmoor

Hi. I'm sure someone with more knowledge about car finance than me will be along shortly. You've come to the right place.

TheMoonandBack

I'm no expert, but getting rid of a new car was my first step and I have not looked back.
What sort of "lease" is it ?

[Deleted User]

Depends on the term of the lease. Are you taking any steps to reduce your 50k of debt?

Ciwan

@venison: Steps I'm taking is being super frugal, and using the snowball method to get rid of the debt. I'm putting around a £1000 a month towards debts. I make £2800 a month.

@TheMoonand It is a lease with International Motors Finance. I am paying £169.5 for a Hyundai i10 with 7000 miles and a £1500 first payment. I later learned from a friend who is also leasing that I got ripped off in this deal. My friend is paying £130 on a same year car with no money down and 10,000 miles.

Baloon payment at the end is £4,128.

Debtslayer

You need to look at your finance deal.
How many months payments and when is the balloon payment due to be paid?
What are the clauses for handing back the car early?
Are you allowed to hand it back after 7 months?

Ciwan

Just found the document that was posted to me. It says the following:

1 repayment of 169.50
35 repayments of 169.50
1 repayment of £4,128 which includes the Option to purchase fee.

At the back there is a section that says:

TERMINATION: YOUR RIGHTS
You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £5,865.00. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more

That makes no sense to me! £169.50 x 18 (which is half of the lease agreement) is £3,051. Why does it say I need to pay £5,865.00!?

itchyfeet123

Ciwan wrote: »

That makes no sense to me! £169.50 x 18 (which is half of the lease agreement) is £3,051. Why does it say I need to pay £5,865.00!?

It's half the total amount, not just your monthly payments. So £169.5×36/2 + 4128/2. But I get £5,115, not 5,865. Is there a termination fee or something?

Ciwan

hmm, so even though I'll be returning the car after the 3 years are up, that last balloon payment of £4,128 that I won't be paying is still considered part of my lease

I guess there must be some sort of extra fee. Am I right that I am stuck with this now? It makes no sense to pay £5,865

Fireflyaway

Call the company and ask. Ensure you have a pen to write everything down and ask them to repeat anything tricky.
I handed a car back and the deal there was that provided I had paid at least half of the original loan amount, I could hand it back with no penalties.

comeandgo

itchyfeet123 wrote: »

It's half the total amount, not just your monthly payments. So £169.5×36/2 + 4128/2. But I get £5,115, not 5,865. Is there a termination fee or something?

There is a payment of 1,500 at the start, that makes up the 750 short in your calculation above.