Lease car and illness

P_Walters

What happens in the event of serious illness where you’re told you can’t drive and you need to give a lease car back. Do you still have to pay the (massive) difference? Do the companies make provision for this type of occurrence (it’s Ford Credit). 

Brock_and_Roll

There are no provisions in car finance agreements for medical exceptions. The normal rules of early settlement or early termination apply. People are of course free to take out illness cover if they wish to protect themselves from such an eventuality.

However, if you have paid over 50% of the total committed payments (including any balloon payment) then you have the right to return the vehicle and voluntarily terminate the contract. Look a the original documentation - there will be a "total amount payable" referenced. Furthermore, if you are close to this 50% point, it may make sense to pay up to the 50% mark to enable you to VT the contract.

foxy-stoat

Or just hand the car back now - they will chase you but if you have serious illness your employment may well be over and you will have no use for your credit file for a few years.

DrEskimo

OP do you mean car finance, or a lease agreement?

They are both handled differently when it comes to early termination.

P_Walters

Thanks for your responses. 
DrEskimo, it’s leased. 

DrEskimo

P_Walters said:

Thanks for your responses. 
DrEskimo, it’s leased. 

Then the VT clause doesn't apply. You need to check your contract with the lease company, but typically you are liable for 50% of the total amount repayable left in the agreement.