8k miles left on 20k lease, 5 months left

darkh0rse

Hello all,

My lease car is due to be handed back in November after 2 years. I had 10k/year allowance @ £200p/m
I've driven 10 miles in it since mid March.
My insurance renews in August.
There is a small dent in one of the rear panels which was acquired when parked up. (yay).

I am not in financial hardship so I don't need to defer any payments for cash-flow but then again at the same time it is sat there parked up on the road and doing nothing and money is being tipped away each month.

With the low mileage, small dent, insurance in August but car runs till November, I can't quite see the best plan of action for it.

Do I repair the dent now or wait? Do I negotiate low mileage/dent on return? Do I return early? Are insurance companies being more helpful with insurance extensions etc due to Covid? Or is it just simply a drawback of leasing and I just need to accept it and move on?

Any thoughts appreciated, cheers.

sharpe106

The current climate does not change your contract. The lower milage makes no difference. If you want to return the car early it wil cost you whatever the charge would have been anyway.

Gonna-be-debt-free

Regarding the dent - check your terms.  I found mine were surprisingly lenient - no charge for scratches that don't go through the undercoat, upholstery rips less than 5cm etc.

Semple

As you've stated, this is simply one of the drawbacks of leasing a car. You could argue that similar would apply if you owned the car outright as cars "usually" depreciate with age regardless of mileage. Go for a few long drives over the summer to use up the mileage?

Grumpy_chap

You won't get anything back for the reduced mileage - especially as there'll be a mass of cars returning with 3 months' worth less mileage than any normal time.

They'll probably sting you for the dent.

Entirely your choice whether you keep the car until November or return it early.  What does the contract say about early termination?  If you give this car back, then lockdown is lifted, will you be needing a replacement car soon?  If so, it might only be one month saved until you are back taking on the new car...

CreditCardJunkie

Who is the car with? I had a PCP car with Peugeot which I returned last year (it had like 12k miles under contract and there is no reimbursement for this). I also had a small dent in the rear bumper which I was told would need a new bumper, sprayed etc. I decided to take my chances as the car was otherwise immaculate and was only charged £48 for smart repair.

darkh0rse

Thanks for the advice - I just wanted to check I hadn't missed any simple solutions. 

I will need the car as things start to get back to normal so I will keep hold of it after all your comments - no point creating extra work when I'll need one soon enough, and at least I know I can drive it wherever and won't hit the mileage cap.

Here's a photo of the dent. The mark is about the diameter of a 10p coin. It's from Arval via Leasing Options on PCH.
The term in the contract relating to damage/wear and tear is as follows:

At the end of the Contract Term (or on early termination of this Agreement or late return of the Vehicle) the Hirer will make the Vehicle available for collection. A representative on behalf of ARVAL will complete an initial report on the mechanical and bodywork condition of the Vehicle including its milometer reading. The Hirer or its representative will sign a copy of that report upon agreement of its content ARVAL shall invoice the Hirer for the cost of repairs (whether or not carried out) to a Vehicle returned to ARVAL that is subject to damage which, in accordance with the BVRLA Fair Wear and Tear Guide for the Contract Hire Industry, would constitute unfair wear and tear and/or for any diminution of the value of the Vehicle resulting from a previous repair to the Vehicle. All invoices for unfair wear and tear charges must be paid by the Hirer in accordance with Clause 3 of this Agreement.