Car early termination

sam.bailey1976

I have rented a car via a salary sacrifice scheme run by my employer via a leasing company called TCH Salsa

This was to be a 36 month lease. The monthly repayments are 382.50 for the car and then 69.10 for the insurance.

I have made 5 payments out of the 36

I have become very ill and have told my company I am retiring on ill health grounds. I am not claiming any pension rights etc, just voluntarily retiring as my health is such that I do not feel I will be able to work again

The contract I signed with TCH Salsa refers to an early settlement fee if the agreement is terminated early but does not give any details of how this will be calculated. There is nothing on their website or in their Ts and Cs to suggest how this will be calculated.

The contract does say if I am forced to retire through ill health I will not be liable for early termination fees

My employer have let the leasing company know I am leaving and have requested an early termination figure

I am concerned this could be 10k plus if I look at what is left on the loan but have no way of calculating what this might be as there is nothing in the contract I signed or in any of their literature.

I am very worried and wanted to know;

if there is nothing in the contract regarding how such a fee would be calculated, can they enforce it

If I have stated to my employer that I am retiring due to ill health, will this be enough for the leasing company or will I have to satisfy some criteria - I think my GP would support my retiring

If it is enforceable and they won't accept that I have retired, how much is it likely to be

If it is say 10k and I can't afford to pay it, will they accept instalments - to be honest they will have to as I have no money and no income

I am making myself more ill worrying about this and wondered if anyone had any advice

Thank you

molerat

I think to "retire on ill health" you would need to go through the proper channels including claiming your ill health pension, your current proposal is simply resignation. You need to work with the lease co and your employer to find the best way forward. Is there anyone else in your co that needs a car as it may be possible to transfer the lease.

AnotherJoe

I would expect you would need a letter from your doctor confirming that you are retiring on the grounds of ill health which would then allow you to activate that clause in your contract regards Ill health.

Why aren’t you claiming any pension due to you ?

sam.bailey1976

No - no one wants to take the lease on

I'm now looking at wewantanycar to see if they could buy it and settle the finance. There will likely be a gap which I would need to pay but it would be considerably less. I don't know if this is an option or advisable if it is

sam.bailey1976

I don't think I can access my pension early plus I am only 42 so don't want to deplete the little that is there and my husband can support both of us so I feel like I can give up work and leave the pension where it is until I need it when he retires

BoGoF

sam.bailey1976 wrote: »

No - no one wants to take the lease on

I'm now looking at wewantanycar to see if they could buy it and settle the finance. There will likely be a gap which I would need to pay but it would be considerably less. I don't know if this is an option or advisable if it is

If its a genuine lease and not PCP then there will be no finance to settle. You are essentially renting a car for a fixed period. I have a lease car and if I wanted to give the car back I would still need to pay thr remaining rentals minus a whole 4% discount.

sam.bailey1976

I think it is a genuine lease so I am guessing from what you are saying I will owe all the remaining 31 payments

I won't be able to pay this and will have to offer instalements

Unless wewantany car or similar is a viable option?

System

You can't sell a car you're hiring. Leasing is hiring. If it was HP or a PCP deal then you could.

nomoneytoday

If you have to pay for the car anyway, why don't you keep the lease open?

molerat

nomoneytoday wrote: »

If you have to pay for the car anyway, why don't you keep the lease open?

According to the T&Cs that option is not available.