VW financial services - terminating lease early

awhite6889

I entered into a 2 year lease in July 2017 and my circumstances will be changing. I am moving to London where I will not need the car. I received a settlement figure from them which is exactly 65% of the remaining amount left to pay when including the VAT.

Has anybody experienced handing their car back early in a lease deal, is there any negotiation available with these guys or is the only way to hand it back to take their settlement figure?

Thanks!

neilmcl

You don't have a lease, it's either an HP or PCP agreement, no?

There's no "negotiation" on the settlement figure this is the amount that you currently owe to complete the agreement.

molerat

You need to understand exactly what type of contract you have, see the big bold writing at the top.

If it really is a lease then they are being generous. You signed a contract and can be held to it. They hold all the cards so anything you can negotiate is a bonus.

With a PCP / HP the CCA allows you to end the contract early having paid (or will make your payments up to) half the total due on the contract. There will be no negotiating around this.

awhite6889

Thanks for your responses.

Sorry I should have clarified, I've got a Contract Hire agreement.

neilmcl

awhite6889 wrote: »

Thanks for your responses.

Sorry I should have clarified, I've got a Contract Hire agreement.

OK, then it is a lease, Apologies, I was thrown by the idea of a settlement figure as this usually applies to finance arrangements, such as HP or PCP finance. In this case then the settlement figure simply equates to the remaining monthly rental payments, I'd guess this would be non-negotiable.

JP1978

I have seen threads on PistonHeads to suggest that VWFS early termination fee is generally 50% - maybe have a search?

awhite6889

Thanks.

They've given me a settlement fee of 54.1%, but then when adding VAT to that it comes to 65%. I just wanted to know if anyone has experienced trying to negotiate that number.

System

JP1978 wrote: »

I have seen threads on PistonHeads to suggest that VWFS early termination fee is generally 50% - maybe have a search?

Yes, for a car BOUGHT on HP or PCP. The OP isn't buying a car, they're leasing one. No early termination fee rights with leasing.

Penelopa.Pitstop

awhite6889 wrote: »

I entered into a 2 year lease in July 2017 and my circumstances will be changing. I am moving to London where I will not need the car. I received a settlement figure from them which is exactly 65% of the remaining amount left to pay when including the VAT.

Has anybody experienced handing their car back early in a lease deal, is there any negotiation available with these guys or is the only way to hand it back to take their settlement figure?

Thanks!

Someone who leased their car at similar time you did, got following termination fees from VWFS:

"60% of the outstanding rentals in the 1st half of the agreement & 50% of the outstanding rentals during the 2nd half of the agreement." That's quote from Pistonheads forum.

So it's quite similar to what you were quoted. You're lucky it's VWFS, because some other companies have much higher fees or settlement costs.