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Car Lease Query
My daughter took out a car lease on a used vehicle for 4 years and is now about 2 and a half years into the agreement.
At the time of taking out the lease, she had little to no credit history due to her age (19) at the time. She is currently paying £130 a month for a C1.
She would now quite like to change her car for something a bit more sturdy with a bigger boot.
Questions:
1. Would she be able to "trade in" for another car without huge penalty?
2. Would she have to go back to the same dealership?
3. The dealer she leased from only deals in used cars but could she go somewhere else and trade in her lease and take out a new agreement with another company / dealership if they had what she wanted (new or used)?
We're not sure how it works or if it will be cost effective and we don't particularly want to go back to the same dealer.
many thanks for your help.
At the time of taking out the lease, she had little to no credit history due to her age (19) at the time. She is currently paying £130 a month for a C1.
She would now quite like to change her car for something a bit more sturdy with a bigger boot.
Questions:
1. Would she be able to "trade in" for another car without huge penalty?
2. Would she have to go back to the same dealership?
3. The dealer she leased from only deals in used cars but could she go somewhere else and trade in her lease and take out a new agreement with another company / dealership if they had what she wanted (new or used)?
We're not sure how it works or if it will be cost effective and we don't particularly want to go back to the same dealer.
many thanks for your help.
0
Comments
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Is it truly a car lease or possibly some other kind of finance deal? It would unusual to lease a used car.
Anyway you would need to read the contract she signed and se what it says about early termination.0 -
Ah ... good point. I use the term "lease" loosely as it could have been Personal contract hire or something alike.
I do know that the guy who organised the deal at the car shop said she wouldnt want to keep it for 4 years and that she could change earlier.
She would be looking to lease/hire/PCP etc another car but not necessarily from the same car shop.
Do other dealerships swop over an agreement if you decide to "lease" another car?0 -
If its a PCP she could trade it in and the dealer would clear the finance and probably roll the balance over to new vehicle if it doest clear.0
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Thanks for the reply.
I think I understand it better now - it all depends on negative or positive equity in the vehicle I suppose.0 -
She could contact the lender, see what the outstanding balance is and compare that with the value of the car. We Buy Any Car website will give you a rough figure.
Negative equity is very likely unless she put down a big deposit.0
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