Early termination of rental contract...

m0spz

Good evening,

I hope you are all well.  I have just received the following e-mail from my vehicle lease company...  The main thing is that I have a 12 month contract with them, and if I were to terminate the contract early I would be liable to an early termination fee of £750...  So surely if they are terminating the contract they should be liable for the same.

What are your thoughts?


---------------------------

Dear XXXX,

Please be aware that we need to arrange the collection of your subscription vehicle. We regularly assess elmo’s fleet in line with a number of factors including the age and mileage of the vehicle. Unfortunately, we will be removing your vehicle from our fleet.

In accordance with this, we will need to conclude your subscription and arrange for the return of the vehicle before 10th December. Per the subscription agreement, we are obliged to provide no less than 30 days notice to terminate a subscription, and this collection date represents the period for which you have paid for subscription services, failure to book collection before this date will result in a daily fee being charged until collection is arranged. We understand that this is an inconvenience and we will waive your collection and any early termination fee.

We kindly request that you select your collection date by either terminating your subscription through your dashboard at XXXXXX or contact us by calling XXXXXX  within the next 5 working days.

Sadly we do not have an alternative vehicle to offer you due to high demand.

We apologise for any inconvenience that this may cause and we understand that this situation may raise questions or concerns. Our team is readily available to provide any necessary clarification or assistance.

Best Wishes

Car_54

If their letter is to be believed, all they are doing is provided for in the contract. 

If you think you should be entitled to an early termination fee, the time to raise that was before you signed the contract.

Grumpy_chap

m0spz said:

Good evening,

I hope you are all well.  I have just received the following e-mail from my vehicle lease company...  The main thing is that I have a 12 month contract with them, and if I were to terminate the contract early I would be liable to an early termination fee of £750...  So surely if they are terminating the contract they should be liable for the same.

What are your thoughts?


---------------------------

Dear XXXX,

Please be aware that we need to arrange the collection of your subscription vehicle. We regularly assess elmo’s fleet in line with a number of factors including the age and mileage of the vehicle. Unfortunately, we will be removing your vehicle from our fleet.

In accordance with this, we will need to conclude your subscription and arrange for the return of the vehicle before 10th December. Per the subscription agreement, we are obliged to provide no less than 30 days notice to terminate a subscription, and this collection date represents the period for which you have paid for subscription services, failure to book collection before this date will result in a daily fee being charged until collection is arranged. We understand that this is an inconvenience and we will waive your collection and any early termination fee.

We kindly request that you select your collection date by either terminating your subscription through your dashboard at XXXXXX or contact us by calling XXXXXX  within the next 5 working days.

Sadly we do not have an alternative vehicle to offer you due to high demand.

We apologise for any inconvenience that this may cause and we understand that this situation may raise questions or concerns. Our team is readily available to provide any necessary clarification or assistance.

Best Wishes

I think much the same happened with another "subscription" car company recently.  Perhaps there is simply a flaw in the business model that means all such companies have limited longevity.  Perhaps the business model simply collapses now that interest rates have risen.  Of course, none of that is really of concern to the customers, but it helps with context.

Are the statements correct that have been made, particularly "as per the agreement they need to give 30 days notice"?
The company are waiving any of the end of contract fees you would have been liable for, but you won't be entitled to the same compensation unless the contract states that (which I doubt).

It rather looks as though you need to verify the e-mail as genuine and, assuming that is confirmed, make the arrangements to return the vehicle.
The consider what you will do as an alternative, given the subscription company can't provide anything.

m0spz

Here is what I have sent to them, which is quotes the relevant bits of the contract:

Good evening Jade,

I have just spoken to one of the agents on the phone about this, and she has kindly said that she would do some research for me.

1. I will of course return the vehicle by the date stated and will arrange this once this query is answered satisfactorily. 
2. I feel that it is poor customer service for you not to provide another car, as we have a contract that you will supply my vehicle for 12 months.
3. I can see that you have terminated the contract in pursuance of clause 23.1: We may end the Subscription Agreement on notice. We may end the Subscription Agreement without a reason, by giving you no less than 30 days’ written notice. If we do so, the Subscription Agreement will end on the expiry of that notice, and you must Return the Vehicle to us before that notice expires.
4. I also note in clause 24.5b that an early termination fee of £750 is payable if "we (Elmo) end the Subscription Agreement before the minimum term set out in section 3.1 (Hire Period) of the Hire Agreement ends pursuant to clause 23 (When we may end this contract if you break it) of these General Terms." as such I accept your offer of not paying the "pick up charge" and also accept your early termination fee of £750, as I have not breached my contract.

Please confirm to me that this is what will happen.

Best wishes

Brie

I would have added something to the effect of "I will return the car after having received the early termination fee of £750 from you".    Otherwise what if you hand the car in and they don't pay up?