Can I change my mind on a contract without paying early exit fee

hjpwarwick

I've recently brought a hire car through NHS fleet cars at work. It's a 3 year contract. However I really don't like the drive and have just found out if I leave early there's a £3000 early exit fee. I called and they said you can't change your mind.
Is this valid?
Is there a way I can return the car before the 3 years without paying the ridiculously high early exit fee?

tightauldgit

What's the exact form of the transaction? Is it one of these employer schemes where the employer has a contract with the car provider and you pay back the employer? If so then consumer rights probably don't apply. 

If it's a straight forward PCP-type deal then you should have a 14 day cooling off period and after that I think you're bound by the terms you signed up to. 

Alderbank

These schemes are public service salary sacrifice schemes. Each NHS trust runs their own scheme but they are all very similar.
The trust leases the vehicle on a 3 year B2B contract from a supplier such as NHSfleetsolutions who insure and maintain the vehicle over the lease period. Your NHS trust then allow you to use the car in return for the salary sacrifice you make. No consumer rights.

A quirk of some NHS schemes is that you can't just return the vehicle early even if you pay the early termination fee (which they describe as 'a financial penalty contractually due'). You also have to demonstrate a 'valid lifestyle change' which they must approve of. In other words you can't return it before the 3 years are up, pay the fee and just lease a different car that you like better. I believe the reason is to reduce global warming and to encourage employees to get fitter. Sadly a lot of NHS staff are not very fit.

Would you be willing to return the car and cycle to work instead?

Aylesbury_Duck

hjpwarwick said:

I've recently brought a hire car through NHS fleet cars at work. It's a 3 year contract. However I really don't like the drive and have just found out if I leave early there's a £3000 early exit fee. I called and they said you can't change your mind.
Is this valid?
Is there a way I can return the car before the 3 years without paying the ridiculously high early exit fee?

Were you made aware of the existence, scale and terms of the fee in the agreement terms, before signing?

Nearlyold

tightauldgit said:

What's the exact form of the transaction? Is it one of these employer schemes where the employer has a contract with the car provider and you pay back the employer? If so then consumer rights probably don't apply. 

If it's a straight forward PCP-type deal then you should have a 14 day cooling off period and after that I think you're bound by the terms you signed up to. 

Just to clarify for reference, the 14 day Cooling Off Period on PCP's does not get you out of the contract in relation to the car purchase - it only gets you out of the finance, once you've given notice you wish withdraw from the finance agreement you have 30 days to repay the finance company the amount you borrowed.

DullGreyGuy

Nearlyold said:

tightauldgit said:

What's the exact form of the transaction? Is it one of these employer schemes where the employer has a contract with the car provider and you pay back the employer? If so then consumer rights probably don't apply. 

If it's a straight forward PCP-type deal then you should have a 14 day cooling off period and after that I think you're bound by the terms you signed up to. 

Just to clarify for reference, the 14 day Cooling Off Period on PCP's does not get you out of the contract in relation to the car purchase - it only gets you out of the finance, once you've given notice you wish withdraw from the finance agreement you have 30 days to repay the finance company the amount you borrowed.

The OP hasn't take an PCP deal or agreed to purchase a vehicle

Nearlyold

DullGreyGuy said:

Nearlyold said:

tightauldgit said:

What's the exact form of the transaction? Is it one of these employer schemes where the employer has a contract with the car provider and you pay back the employer? If so then consumer rights probably don't apply. 

If it's a straight forward PCP-type deal then you should have a 14 day cooling off period and after that I think you're bound by the terms you signed up to. 

Just to clarify for reference, the 14 day Cooling Off Period on PCP's does not get you out of the contract in relation to the car purchase - it only gets you out of the finance, once you've given notice you wish withdraw from the finance agreement you have 30 days to repay the finance company the amount you borrowed.

The OP hasn't take an PCP deal or agreed to purchase a vehicle

Eh yes I know that. That's why I said it was just to clarify for reference.

tightauldgit

Nearlyold said:

tightauldgit said:

What's the exact form of the transaction? Is it one of these employer schemes where the employer has a contract with the car provider and you pay back the employer? If so then consumer rights probably don't apply. 

If it's a straight forward PCP-type deal then you should have a 14 day cooling off period and after that I think you're bound by the terms you signed up to. 

Just to clarify for reference, the 14 day Cooling Off Period on PCP's does not get you out of the contract in relation to the car purchase - it only gets you out of the finance, once you've given notice you wish withdraw from the finance agreement you have 30 days to repay the finance company the amount you borrowed.

I think it also depends on whether you've seen the car or if it's truly a distance sale because if it's the latter you should still have your right to cancel the purchase. 

In this case, it would appear to have been a distance sale. But as others have mentioned its a different type of arrangement anyway. 

tightauldgit

Alderbank said:

These schemes are public service salary sacrifice schemes. Each NHS trust runs their own scheme but they are all very similar.
The trust leases the vehicle on a 3 year B2B contract from a supplier such as NHSfleetsolutions who insure and maintain the vehicle over the lease period. Your NHS trust then allow you to use the car in return for the salary sacrifice you make. No consumer rights.

A quirk of some NHS schemes is that you can't just return the vehicle early even if you pay the early termination fee (which they describe as 'a financial penalty contractually due'). You also have to demonstrate a 'valid lifestyle change' which they must approve of. In other words you can't return it before the 3 years are up, pay the fee and just lease a different car that you like better. I believe the reason is to reduce global warming and to encourage employees to get fitter. Sadly a lot of NHS staff are not very fit.

Would you be willing to return the car and cycle to work instead?

If that's the arrangement then t'would appear OP is stuck.

macman

Did you not test drive a similar vehicle before you agreed to lease it for 3 years? IIUC, you haven't bought it, you've leased it, and leases do not normally have any get-out before the end of term.
The early exit fee is not ridiculous. You didn't state the value of the vehicle, but it became a used var with one owner as soon as you drove it off the forecourt, and the immediate drop in value could easily be 10% or more.

DullGreyGuy

macman said:

Did you not test drive a similar vehicle before you agreed to lease it for 3 years? IIUC, you haven't bought it, you've leased it, and leases do not normally have any get-out before the end of term.
The early exit fee is not ridiculous. You didn't state the value of the vehicle, but it became a used var with one owner as soon as you drove it off the forecourt, and the immediate drop in value could easily be 10% or more.

Its via salary sacrifice and so probably legally its not even them thats leased it... most companies that provide vehicles to their employees either as a traditional company car or via flexible benefits/salary sacrifice etc arent FCA authorised