Cancelled car lease as a result of Covid-19, leasing company now want £500 cxl fee

meanmachinemanford

Agreed to lease a new car from ******** vehicle solutions back in February, paid their admin fee and signed vehicle order form / finance documents, as a result of Covid delivery was delayed and since then our circumstances have changes in terms of financial affordability so we cancelled the order on the 30th April. Leasing company is demanding £500 cancellation fee as per their T&C's, they will not budge on this and have rejected my offer to pay half but offered for me to pay over 5 monthly installments £100 per month. Do we have a leg to stand on given we agreed to their terms / signed the agreement? Can I do a chargeback / section 75 to get the money back? I have been trying to argue our case stating its dispropionate, unrealistic, unfair etc and that with other leasing companies you just lose the admin fee but they are having none of it. BVRLA are saying when we signed the order form we agreed to their terms. Have now escalated to Financial Ombudsman Service but awaiting reply. Any advice would be greatly appreciated.

Life__Goes__On

Did you have an agreed delivery date?

meanmachinemanford

Delivery date was originally agreed for 31st March but then lockdown happened on 23rd March and Car Dealerships closed indefinitely meaning they could not deliver, leasing company got back in contact with me at the end of April.

Life__Goes__On

meanmachinemanford said:

Delivery date was originally agreed for 31st March but then lockdown happened on 23rd March and Car Dealerships closed indefinitely meaning they could not deliver, leasing company got back in contact with me at the end of April.

Does it say anything about delay in their T&Cs? As if not you could argue that they broke the T&Cs,and trying to force you  to have a new time-frame that you don't want.

meanmachinemanford

No it doesn't say anything about delay in their T&C's. Just says on the order form in stock 2/3 weeks, must be delivered and registered by 31st March 2020. In T&C's it says "I/We hereby agree to accept delivery of the above vehicle within 14 days of the vehicle arriving into stock or the specified delivery date above whichever is the latter, subject to availability and satisfactory completion of finance documentation".

Life__Goes__On

Seems they covered it by saying arriving into stock  & whichever is the latter.
Have a read of this, it might be of help
https://www.which.co.uk/consumer-rights/advice/i-think-theres-an-unfair-term-in-my-contract-what-can-i-do

meanmachinemanford

Yes I think so, they wanted to force me to take delivery by end of June and we wanted them to extend this but they would not agree to it. Thank you for the which link on unfair terms within contracts, I'll have a read and see if there are any loopholes I can exploit. If we refuse to pay the £500 cxl fee it will cost them more than that in legal / court fees trying to get the money.

Life__Goes__On

I agree.  What I feel works in your favour is the late delivery,  and you have been reasonable in offering 50%.

Streaky_Bacon

https://www.gov.uk/government/publications/cancelling-goods-or-services-guide-for-consumers/cancelling-goods-or-services

Cancellation charges must be a genuine estimate of the business’ direct loss.

Ask them how they have calculated the £500.
Don't say anything about the need for a genuine estimate of loss, just ask them, in writing, how they have calculated it. 

meanmachinemanford

Thanks Streaky Bacon I have asked how they have calculated the £500. 
Life goes on - I have downloaded a template and sent them a complaint letter saying that I shouldn't have to pay due to breach of contract, delay/late delivery of the vehicle etc.