Paying off a LEASE early??

bowf

We've got approx £5000 of lease left on our car, which is 18 months of payments.
Has anyone paid off their lease early?
Please note this is a straightforward lease (PCH) and not PCP.
If we can pay it off early and save the monthly payments, we'd like to.

DrEskimo

To what advantage?

Surely you might as well just put the money in a high interest current/savings account and continue yo pay it off as normal.

foxy-stoat

No point in clearing the lease, you will never own the car and doubt you will save any money.

eschaton

bowf wrote: »

We've got approx £5000 of lease left on our car, which is 18 months of payments.
Has anyone paid off their lease early?
Please note this is a straightforward lease (PCH) and not PCP.
If we can pay it off early and save the monthly payments, we'd like to.

Sounds 100% pointless.

Typhoon2000

You could transfer your lease to someone else. A good few lease companies allow this. There are website where you can advertise your lease.

neilmcl

If you want out of the lease then speak to the lease co. Their penalty might not be the full remaining payments.

bowf

We don't want out of the lease, we don't want to get rid of the car. Just toying with the idea of paying it off and having zero payments until the end of the lease in August 2018.
Don't even kn ow if it can be done, just curious.

Mercdriver

I don't see the advantage. You could put a lump sum into a different current account and run the direct debits from that account, but don't see any real advantage unless you anticipate stormy financial waters ahead and you are trying to make sure your lease isn't affected.

eschaton

bowf wrote: »

We don't want out of the lease, we don't want to get rid of the car. Just toying with the idea of paying it off and having zero payments until the end of the lease in August 2018.
Don't even kn ow if it can be done, just curious.

What would the benefit be?

System

bowf wrote: »

We don't want out of the lease, we don't want to get rid of the car. Just toying with the idea of paying it off and having zero payments until the end of the lease in August 2018.

This will COST you money in the lost interest on the lump sum you paid off which could have been sat in your bank account earning interest.

bowf

Hmmm, putting the money into an account and taking the direct debits off that isn't a bad idea.
But what interest would I likely get on £5000 that is decreasing by £280 per month?
It's just an idea to get our montly outgoings down to an absolute minimum so I can take a lower paid job.
We have the lump sum if needed.