Car lease during covid

ijwrighty

Hi, not sure if this has been asked before but, is there any way to get money back from leasing companies / government when it comes to car leases? Ever since March We’ve been in lockdown after lockdown and dictated to that we can’t travel etc. So at the moment I have x amount per month going out on a car that, I simply, am not allowed to use.
no issues with the payments as I am, thankfully in a job where remote working is possible 100% of the time. I’m just loathed you be paying for something that I’m not supposed to drive unless essential.

Thanks

Caz3121

Are you looking to return the vehicle? how far through your lease are you?
I am guessing a payment plan will not be suitable if you have no issues with payments. (would only incur extra interest)
Are you suggesting that lease companies should give you some sort of money back as you have a car that you are not using?
If you are looking to save money, you may want to check your insurance, I have heard of some giving reduction for reduced mileage eg Direct Line https://www.directline.com/lockdown-car-insurance-refunds

ijwrighty

Hi, thanks for the reply.
im looking at voluntary termination but I’m not quite at the 50% mark as yet, so that’s not an option. I was just wondering if there were any schemes, whether by the leasing companies or the government where we could get some form of rebate? I appreciate the situation is no ones fault but just seeing if there is any money to be saved.

Grumpy_chap

Is it a lease or a PCP?
There have been some threads where people have asked and been successful (in part) for both but, more often than not, unsuccessful requests to adjust the mileage.
Have you actually asked the supplying business?
With a PCP the lower mileage may reflect in higher residual value at the end of the term, so you stand to cover the gain then.  Presumably, though, there will be many cars coming onto the used market at lower mileages so low mileage alone may not increase the retail value...
Are you simply looking to adjust the mileage level, or end the agreement early?

ijwrighty

Hi, sorry it’s a PCP so VT is an option but I’m not at the 50% mark yet. Id love to get rid of the car as it’s a big outgoing that I could do without to be honest. I spoke to them about reducing the mileage but the payment differences were unnoticeable and, as you say, upped the residual value so no point.
think I’m stuck with it until I hit that 50%.

Grumpy_chap

Normally, with PCP, because of the balloon payment, you are nearly at the end of the term before the 50% is reached.  In which case, if the residual value will be some way above the balloon, keeping to the end of term and paying the balloon to then sell swiftly may be the most cost effective route.  Obviously, a calculation to be done when 50% is reached.

jonesMUFCforever

How much have you saved in petrol/diesel charges and car parking though?

ijwrighty

Majority of my mileage is business and I can claim a lot back so that’s not really a problem.

FlameCloud

Why do you think everyone else should pay for your car?

ijwrighty

I’m paying for something that I cannot use due to circumstances out of my control. This is no different to booking holidays abroad and not being able to go on them. There should at least be a significant drop in the monthly cost if you are literally doing 0 miles in the car. Let’s flip it then, the rate it’s going I will have a car that, after 4 years will have 10k on the clock rather than 40k on the clock. Seems a bit unfair that they will be making a margin as part of the monthly payments and the a massive profit on the car at the end of the term. I have no issues with all of the above under normal circumstances as that’s what I signed up for.

Aylesbury_Duck

ijwrighty said:

Majority of my mileage is business and I can claim a lot back so that’s not really a problem.

Get your employer to pay some of the monthly costs, then.  They're the ones saving a fortune whilst you're not driving about, so surely it's logical that they stump up?  That way the lease company continues getting their monthly payments, you're not out of pocket for something you're not using at all, and your employer is no worse off.