Car lease cancelled by manufacturer

Zoelyoung

Hi, I signed up for a car lease on a new electric mini back at the start of Nov 21.  On the 13th January, I was advised by the lease company that my ordered was being cancelled - reason stated was due to covid supply chain issues and that the manufacturer is no longer 'pushing' cars and therefore those without a confirmed production slot will not be fulfilled until Q1 2023.  I understand the supply chain issues and fully expected the delay.  If I were to sign up to a new deal now, the cost is considerably higher than that I signed up to originally.  I have been told, if the order were not cancelled (but rather delayed) then Mini UK could not guarantee the price.  In the terms and conditions attached to the lease agreement that I signed, the only part relating to cancellation was related to the customer cancelling.  Trying to understand if my order can just be cancelled like this.

Aylesbury_Duck

Zoelyoung said:

Hi, I signed up for a car lease on a new electric mini back at the start of Nov 21.  On the 13th January, I was advised by the lease company that my ordered was being cancelled - reason stated was due to covid supply chain issues and that the manufacturer is no longer 'pushing' cars and therefore those without a confirmed production slot will not be fulfilled until Q1 2023.  I understand the supply chain issues and fully expected the delay.  If I were to sign up to a new deal now, the cost is considerably higher than that I signed up to originally.  I have been told, if the order were not cancelled (but rather delayed) then Mini UK could not guarantee the price.  In the terms and conditions attached to the lease agreement that I signed, the only part relating to cancellation was related to the customer cancelling.  Trying to understand if my order can just be cancelled like this.

I would think it can be, as long as they put you back in the position you were in before signing the deal, i.e. any deposits, charges, etc. are returned in full.  In other words, you have suffered no loss.  There is the often talked about "loss of bargain" concept, but I don't know if it would apply in this situation.

Grumpy_chap

I am surprised in this case that the lease company are not trying to put forward another attractive offer to secure / keep your business for a lease of some kind - after all, you still need a car of some kind, presumably.

Jenni_D

Aylesbury_Duck said:

Zoelyoung said:

Hi, I signed up for a car lease on a new electric mini back at the start of Nov 21.  On the 13th January, I was advised by the lease company that my ordered was being cancelled - reason stated was due to covid supply chain issues and that the manufacturer is no longer 'pushing' cars and therefore those without a confirmed production slot will not be fulfilled until Q1 2023.  I understand the supply chain issues and fully expected the delay.  If I were to sign up to a new deal now, the cost is considerably higher than that I signed up to originally.  I have been told, if the order were not cancelled (but rather delayed) then Mini UK could not guarantee the price.  In the terms and conditions attached to the lease agreement that I signed, the only part relating to cancellation was related to the customer cancelling.  Trying to understand if my order can just be cancelled like this.

I would think it can be, as long as they put you back in the position you were in before signing the deal, i.e. any deposits, charges, etc. are returned in full.  In other words, you have suffered no loss.  There is the often talked about "loss of bargain" concept, but I don't know if it would apply in this situation.

I think it might - especially if the contract T&Cs were imbalanced, putting cancellation restrictions on the consumer but not on the lease company. Enforcing/claiming loss of bargain though is a different matter.

Ectophile

It's a "frustrated contract", where the seller can't deliver for reasons beyond their control. All they can do is offer to cancel the contract at no penalty to you.