Ending Arval Lease Early - Lack of Transparency

CirrusDesAigles

We have a three year PCH on a car with Arval. We are 2 years and 5 months through and would like to terminate early.

Phoned Arval and they said it can go to auction and if it makes less than their value for the car, I am liable for the difference. I have no issue with this and I'd expect to pay a bit to get out of the contract.

The issue is though, they won't let me know their value of the car! Surely this is illegal? There is zero transparency in the process if they won't let me know the value in advance. They can claim there is a huge shortfall regardless of the sales price if the value isn't declared to me in advance of the auction?

If one writes a lease car off, the value is immediately declared to the lessee and insurance company so I can't understand why they're withholding the information here?

foxy-stoat

They arent giving you all the facts as they dont want you to hand it back early. You should read your original contract, under the section where it says about terminating early.

BoGoF

I would imagine their value would be whatever Glass' guide would be for your car. Try snd find that out before committing as at auction the shortfall could well be more than the remaining 7 months payments.

forgotmyname

How will they know what it will fetch at auction? It will sell for whatever it sells for on the day.

It maybe a quite day with less buyers, or the buyers on that day do not want your car. Or there are minor issues that put them off or bid less.

Price guides are not a you will get ££££ for it its a guide. You may get less or more.

After it sells they will know what it sold for and not before.

Hunter_Jaeger

I have been told that they are all pre sold at some vastly inflated price, when I tried to buy a leased car at completion of the lease. The price they offered the car to me at was 20%-25% higher than I thought it was worth.

OP I would expect to pay virtually the whole amount remaining on the lease if I were in your shoes. Be best running to end of contract if you can.

BoGoF

forgotmyname wrote: »

How will they know what it will fetch at auction? It will sell for whatever it sells for on the day.

It maybe a quite day with less buyers, or the buyers on that day do not want your car. Or there are minor issues that put them off or bid less.

Price guides are not a you will get ££££ for it its a guide. You may get less or more.

After it sells they will know what it sold for and not before.

But lease company are telling OP that will be difference between their valuation and what it achieves at auction?

Have to say never heard of this with lease agreement. My early terminatiom clause is that I am due to pay remaining monthly rentals with a 5% discount.

CirrusDesAigles

Cheers for replies.

I can pay 50% of remaining monthly payments but I am liable for excess mileage (will be a few there) and wear or tear (won't be much there) OR I can let it go to auction and if it makes their "written down value" (as per contract) then I won't be charged but if it falls short of the "written down value" then I am liable for the shortfall (I have no issue with this).

My issue is the fact they won't declare to me what the "written down value" currently stands at. If it's £3,000 above the glass guide price then I am snookered, if it's around the glass/parkers etc value then I am better going with this option.

I am just very surprised that the lack of transparency of declaring the "written down value" as cited in the contract is legal?

neilmcl

CirrusDesAigles wrote: »

Cheers for replies.

I can pay 50% of remaining monthly payments but I am liable for excess mileage (will be a few there) and wear or tear (won't be much there) OR I can let it go to auction and if it makes their "written down value" (as per contract) then I won't be charged but if it falls short of the "written down value" then I am liable for the shortfall (I have no issue with this).

My issue is the fact they won't declare to me what the "written down value" currently stands at. If it's £3,000 above the glass guide price then I am snookered, if it's around the glass/parkers etc value then I am better going with this option.

I am just very surprised that the lack of transparency of declaring the "written down value" as cited in the contract is legal?

Have you asked them?

CirrusDesAigles

neilmcl wrote: »

Have you asked them?

Yes, and they refused to declare it:

"Unfortunately we are unable to disclose this information. However, I can advice you that we do have Auction Executives that will attend the vehicle sale and are in commission based roles so it is not in their interest or ARVALS to make a loss on the sale."

That's reassuring :rotfl:

Have gone back with a slightly punchier email demanding to know the value.

Jumblebumble

CirrusDesAigles wrote: »

Yes, and they refused to declare it:

"Unfortunately we are unable to disclose this information. However, I can advice you that we do have Auction Executives that will attend the vehicle sale and are in commission based roles so it is not in their interest or ARVALS to make a loss on the sale."

That's reassuring :rotfl:

Have gone back with a slightly punchier email demanding to know the value.

They are telling blatant porkies
They are unwilling not unable!

Herzlos

You can presumably use glass to get an idea of what your car is expected to get from auction, fudge in a bit and see if it's likely to be more than £3k.


You could always ask them how much it'd cost to buy the car off them directly.