Lease car

Hhzg

I took out a lease car last June with an annual mileage of 10000. At the time this was fine, but I’ve since started a job doing home care and as you can imagine, I rack up the miles. Is there any way I would be able to get out of the agreement? Obviously on my wages, paying it off early is not an option, but I’m going to get stung badly for going over my mileage allowance.

Mr.Generous

Cut down your use of the car, buy a cheap car and run it into the ground for the last couple of months of 1 year into the first couple of the next year? How many miles per month are you doing? Is the charge 7.5p per mile or similar? Out of interest what car and how much, I keep getting really tempted by a couple of lease deals...

wgl2014

Check your excess mileage charge and estimate how far over you will be at the end of the term. This may well be less than running a second banger or using alternative transportation.
If it is an option to just pay this charge I would suggest working out what it equates to each month and putting this aside.
(For info the wife has a lease car, excess miles are 3p each)

AdrianC

Talk to the financier. They'll up your mileage allowance, but - obviously - increase the lease payments.

BoGoF

Does your employer pay a mileage allowance to soften the blow? You may be able to claim tax relief if they pay less than 45 ppm, assuming you earn enought to pay tax

As an aside....have you changed your insurance to include business use?

JP1978

Many lease companies will allow you to increase or decrease the mileage allowance to suit and will often be cheaper than paying the excess mileage charge.

As an example VW (So Audi, Seat, Skoda as well) allow changes after the first 6 months and before the last 6 months - I am unsure on how many changes you can make in that time though.

If you do go down this road however, ensure that you can make further changes if you have another change of circumstances and also check that increasing this way, does work out cheaper than just paying the excess ppm.

Excess PPM's will vary between 3p and 25p or more per mile, depending on the lease company and some step the excess ppm in incremental mileage.

macman

There are only two ways to ‘get out’ of the legal contract you signed without penalty . Death or bankruptcy, neither of which may be appealing options for you...