Car Lease Payments

ffarg

Hi 
I'm hoping someone here may have some knowledge on a problem I have with my lease company.

I recently got a new lease vehicle. My contract states an upfront payment of XXX to be taken on or before the delivery date, followed by X number of monthly payments, the first payable one month after delivery (I've posted the exact wording below)

"During the Term one advance Monthly Rental of £xxx.xx (incl. VAT) is payable on or before the Commencement Date, followed by 59 Monthly Rental Amounts of £xxx.xx (incl. VAT), the first payable 1 month after the Commencement Date and the rest at consecutive monthly intervals after that..."

Now I took delivery of the vehicle on 30/05/24 and had a call with their customer service team a day or so after that. In this call I confirmed the payment schedule and was told that they would only be taking the upfront payment, the monthly payment would come out the following month. I was very clear to verify this.
On 14/06/24 they took the upfront payment AND the first monthly payment, and then on 02/07/24 they took another monthly payment.
I called the lease company today and pointed out that they have taken an extra payment. I explained the contract terms very clearly and asked for a refund of the first monthly payment. The lady on the phone told me it was in line with their payment terms. I explained again, that their payment terms, as far as my contract with them was concerned states that they should not have taken the first monthly payment as the "up front" payment was the first payment due. She said that all finance agreements are paid in advance, I explained that I had paid in advance - the "advance Monthly Rental" and that they have acted in conflict with the contract I have with them but she would not budge.
I realise this is not a place for firm legal advice, but I wonder if there's anyone here that knows anything about how, or if, i can go about claiming back that first payment?
Thanks in advance

Ectophile

Assuming the payment was by Direct Debit, then you could go to your bank, and ask them for a refund under the Direct Debit Guarantee.  This should succeed because the bank are required to refund you money that should not have been taken, but will make you very unpopular with the finance company.

The finance deal is almost certainly a regulated one, so it's probably better to make a formal complaint to the finance company.  Tell them that you will go to the financial ombudsman if they don't refund your money.

ffarg

thank you - I've already started a draft letter to the finance company so I'll see where that goes.

sheslookinhot

It seems to me that they took the advance/ upfront payment 2 weeks (14 June) after the commencement date (30 May) rather than taking the advance payment on the commencement date of 30 May. Therefore next payment would be due end June/ early July. Not sure what the issue is.

Arunmor

sheslookinhot said:

It seems to me that they took the advance/ upfront payment 2 weeks (14 June) after the commencement date (30 May) rather than taking the advance payment on the commencement date of 30 May. Therefore next payment would be due end June/ early July. Not sure what the issue is.

I agree with that synopsis.  And all future payments will be taken in the first week of the month.

I don't see them shifting.

facade

sheslookinhot said:

It seems to me that they took the advance/ upfront payment 2 weeks (14 June) after the commencement date (30 May) rather than taking the advance payment on the commencement date of 30 May. Therefore next payment would be due end June/ early July. Not sure what the issue is.

The OP says they took the advance (payment #1) and a monthly payment (payment #2) on 14 June, then another monthly payment (payment #3) on 2 July,  seems to me that the 59th monthly payment will be 1 month early, so they are done out of a month's use of the car.

ffarg

facade said:

sheslookinhot said:

It seems to me that they took the advance/ upfront payment 2 weeks (14 June) after the commencement date (30 May) rather than taking the advance payment on the commencement date of 30 May. Therefore next payment would be due end June/ early July. Not sure what the issue is.

The OP says they took the advance (payment #1) and a monthly payment (payment #2) on 14 June, then another monthly payment (payment #3) on 2 July,  seems to me that the 59th monthly payment will be 1 month early, so they are done out of a month's use of the car.

Yes. This is my point. They’ve taken two monthly payments plus the upfront payment within 5weeks. 

cw8825

Assuming this is all done by direct debit this is correct
its just poor timing by having it on the 30th may
the payment on commencement is due - direct debit is set up but takes 10 working days

the 1st payment is due the next month - ie June 
direct debit set up at same time so payment taken with the 1st payment 

July payment taken as usual

if the car had been delivered on the 1st June 
it would have been the 1 payment but they are correct in what they have done

But admittedly it’s not very clear

facade

Ah!

It works like car tax, the initial payment was due on the 30th May, for the whole of May, then the 1st monthly on 1st of June for all of June, so they came out together.

So just like car tax, they do cheat you out of a month if you buy it towards the end of the month. (If you buy a new car and tax it on the 25th of January, you only get 11 months + 7 days of VED)

Useful learning point, always start leases etc. in the first week of the month.