Unable to afford end of lease mileage and charges

Levatorani123

I took out a lease car in Dec 2022 for a 24 month contract at £580 per month.

In August 2023 I suffered an injury that led me to become disabled and unable to work much, then later barely at all.

I started recieving disability benefits and universal credit, but still had this monthly debit coming out with a contract I couldnt escape. That and my condition meant I now needed the car a lot more.

I was able to afford the lease payments all through 2024 and will be fine paying the last 1 or 2 installments as I had enough savings just, but there is another issue.

I agreed to a 10,000 mile limit with anything over incurring a 0.15p per mile charge... because I was unable to use van and needed the car a lot more for treatment and getting around I have gone over the milage limit significantly and will end up owing around £3k in charges.

There is also damage to the car, fairly significantly to the front bumper that I cannot get fixed via insurance ( another story).

I am expecting in total to owe around 7-9k once damage and milage is calculated. Then again I am informed that damage isnt claculated by simply the cost of repairs but rather the cost of depreiciation in value.. how is that even worked out correctly, I am now worried that will come to more

This is a charge I am simply unable to afford in any way shape or form, as I will still need a vehicle even a very cheap one and only just about managed to make all the lease repayments.

What is best to do here? I am 100% resigned to ending up with a bad credit rating- which is a shame as it has always been good, and plan to offer to pay them a nominal fee of around £30 a month , as there is simply nothing else I can think of.

How do experts here think this will be received? What is likely to happen? Should I contact them early or not  admit to anything yet? My contract runs until the end of Dec.

I did let them know about this about 6 months ago, but all they could do was increase milage but put my payments up to £800 a month, which I simply couldnt afford.

Thank you.

Mildly_Miffed

So you contracted to 20k miles over two years, and have actually covered 40k?

And you're estimating there's £4-6k of damage to the car? But you've estimated that despite not knowing how they work it out?

There's not a lot to be done on the mileage, but would it be cheaper to get the damage sorted before you hand the car back?

Ultimately, yes, they could take you to court for the debt - and if you don't pay, you will get a CCJ. That will cost you a lot more.

Given that you're currently paying £580/mo, why do you think they'd accept £30/mo towards the debt? If the debt does turn out to be £9k, then that's 300 months, 25 years, at 0% interest...

Levatorani123

Mildly_Miffed said:

So you contracted to 20k miles over two years, and have actually covered 40k?

And you're estimating there's £4-6k of damage to the car? But you've estimated that despite not knowing how they work it out?

There's not a lot to be done on the mileage, but would it be cheaper to get the damage sorted before you hand the car back?

Ultimately, yes, they could take you to court for the debt - and if you don't pay, you will get a CCJ. That will cost you a lot more.

Given that you're currently paying £580/mo, why do you think they'd accept £30/mo towards the debt? If the debt does turn out to be £9k, then that's 300 months, 25 years, at 0% interest...

No, sorry, the contracted mileage was 10k over 2 years and ive done 27 k, so 17 k over.

I estimated that was the amount the damage is based upon quoted price for fixing, I only discovered yesterday that  some seem to pay for depreciation in value not the actual damage.

It might be cheaper but I physically cant get the damage sorted as I cant afford it  and cannot get it done via the insurance.

Before injury I had saved  money up  and I   knew  barring any  other extreme cost I had enough to pay the lease contract off.

Therefore after it is paid off I no longer have enough money to pay £580 a month in fact I couldnt even afford one extra payment.

Is it better I discuss this with them prior to sending the car back?

At the moment its either I offer that or nothing, but is it better to contact them  first?

Thanks.

Levatorani123

Mildly_Miffed said:

So you contracted to 20k miles over two years, and have actually covered 40k?

And you're estimating there's £4-6k of damage to the car? But you've estimated that despite not knowing how they work it out?

There's not a lot to be done on the mileage, but would it be cheaper to get the damage sorted before you hand the car back?

Ultimately, yes, they could take you to court for the debt - and if you don't pay, you will get a CCJ. That will cost you a lot more.

Given that you're currently paying £580/mo, why do you think they'd accept £30/mo towards the debt? If the debt does turn out to be £9k, then that's 300 months, 25 years, at 0% interest...

To elaborate a bit further so there are fewer ambiguities.

The car is  a Tesla.

I took the lease out when I  was fit and healthy, had saved up enough and business was fine. I am self employed.

I would have exceeded the mileage limit even without the illness, although that just made it worse as I have to travel back and forth for physio other medical procedures  and use the car far more often than before. 

I know it  may seem odd that I could afford £580 a month and then suddenly only £30 a month but that is literally how it is. I have several dependents.

I rent my home and have no other assets whatsoever.

At  present it is either £30 a month or nothing, I dont really see what taking me to court will achieve, they are more likely to be better waiting to see if my condition improves, is that something I could offer?

Happy to answer more questions but dont want to be judged on decisions made , as its been quite a desperate  15 months.

Levatorani123

Just to add, how is lease damage usually worked out then? If its done by depreciation from  if they were to sell it how can they quantify that? Surely its better to  have it repaired and invoice that cost?

Levatorani123

And which is likely to work out cheaper for me? Sorry for the multiple posts but I cant seem to find an edit button.

DullGreyGuy

Levatorani123 said:
I am expecting in total to owe around 7-9k once damage and milage is calculated. Then again I am informed that damage isnt claculated by simply the cost of repairs but rather the cost of depreiciation in value.. how is that even worked out correctly, I am now worried that will come to more

Unless you were leasing an exotic hypercar depreciation will be less than the cost of repair because people always underestimate how much repairs cost. Given the monthly payments, it wasnt a hypercar. 

Levatorani123 said:
This is a charge I am simply unable to afford in any way shape or form, as I will still need a vehicle even a very cheap one and only just about managed to make all the lease repayments.

What is best to do here? I am 100% resigned to ending up with a bad credit rating- which is a shame as it has always been good, and plan to offer to pay them a nominal fee of around £30 a month , as there is simply nothing else I can think of.

How do experts here think this will be received? What is likely to happen? Should I contact them early or not  admit to anything yet? My contract runs until the end of Dec.

What other debts do you have?
Do you own your property? With a mortgage? Rent?

Ultimately it's a debt which they will attempt to recover. You may be better off asking on the Debt Free Wannabe forum on here as this is less to do with motoring than it is to do with bad debt. Depending on your wider situation it may be better to come up with a payment plan now or wait til the debt defaults and deal with all your creditors at once.

Levatorani123

DullGreyGuy said:

Levatorani123 said:
I am expecting in total to owe around 7-9k once damage and milage is calculated. Then again I am informed that damage isnt claculated by simply the cost of repairs but rather the cost of depreiciation in value.. how is that even worked out correctly, I am now worried that will come to more

Unless you were leasing an exotic hypercar depreciation will be less than the cost of repair because people always underestimate how much repairs cost. Given the monthly payments, it wasnt a hypercar. 

Levatorani123 said:
This is a charge I am simply unable to afford in any way shape or form, as I will still need a vehicle even a very cheap one and only just about managed to make all the lease repayments.

What is best to do here? I am 100% resigned to ending up with a bad credit rating- which is a shame as it has always been good, and plan to offer to pay them a nominal fee of around £30 a month , as there is simply nothing else I can think of.

How do experts here think this will be received? What is likely to happen? Should I contact them early or not  admit to anything yet? My contract runs until the end of Dec.

What other debts do you have?
Do you own your property? With a mortgage? Rent?

Ultimately it's a debt which they will attempt to recover. You may be better off asking on the Debt Free Wannabe forum on here as this is less to do with motoring than it is to do with bad debt. Depending on your wider situation it may be better to come up with a payment plan now or wait til the debt defaults and deal with all your creditors at once.

Car is a Tesla, I was quoted £2600 for the main damage, but they will probably bring up damaged wheel trims, smaller dents and other minor bits too.

No other debts, in fact I have a spotless credit rating up until this point, which is a shame.

Rent is currently covered by universal credit.

Were I still working this wouldnt have been an issue I couldve carried on paying £500 odd a month  to pay the  debt off.

PIP  helps but is not going to touch the sides of the debt as is only £110 a month.

Thanks.

Mildly_Miffed

Levatorani123 said:

No, sorry, the contracted mileage was 10k over 2 years and ive done 27 k, so 17 k over.

£580/mo, £7k/year to rent a car for 5,000 miles a year...?
£1.40/mile in lease alone - plus whatever the upfront was...?!?
And in 27k miles, you've done an estimated £6k of damage to it?

Seconded that this is one for DFW.

LightFlare

Levatorani123 said:

I took out a lease car in Dec 2022 for a 24 month contract at £580 per month.

In August 2023 I suffered an injury that led me to become disabled and unable to work much, then later barely at all.

I started recieving disability benefits and universal credit, but still had this monthly debit coming out with a contract I couldnt escape. That and my condition meant I now needed the car a lot more.

I was able to afford the lease payments all through 2024 and will be fine paying the last 1 or 2 installments as I had enough savings just, but there is another issue.

I agreed to a 10,000 mile limit with anything over incurring a 0.15p per mile charge... because I was unable to use van and needed the car a lot more for treatment and getting around I have gone over the milage limit significantly and will end up owing around £3k in charges.

There is also damage to the car, fairly significantly to the front bumper that I cannot get fixed via insurance ( another story).

I am expecting in total to owe around 7-9k once damage and milage is calculated. Then again I am informed that damage isnt claculated by simply the cost of repairs but rather the cost of depreiciation in value.. how is that even worked out correctly, I am now worried that will come to more

This is a charge I am simply unable to afford in any way shape or form, as I will still need a vehicle even a very cheap one and only just about managed to make all the lease repayments.

What is best to do here? I am 100% resigned to ending up with a bad credit rating- which is a shame as it has always been good, and plan to offer to pay them a nominal fee of around £30 a month , as there is simply nothing else I can think of.

How do experts here think this will be received? What is likely to happen? Should I contact them early or not  admit to anything yet? My contract runs until the end of Dec.

I did let them know about this about 6 months ago, but all they could do was increase milage but put my payments up to £800 a month, which I simply couldnt afford.

Thank you.

You’ve been handing over £580 a
month for 2 years —- not likely they will accept £30 a month for anything owed

I appreciate your circumstances have changed - but from their point of view…

LightFlare

Mildly_Miffed said:

Levatorani123 said:

No, sorry, the contracted mileage was 10k over 2 years and ive done 27 k, so 17 k over.

£580/mo, £7k/year to rent a car for 5,000 miles a year...?
£1.40/mile in lease alone - plus whatever the upfront was...?!?
And in 27k miles, you've done an estimated £6k of damage to it?

Seconded that this is one for DFW.

At least it was an EV so all the savings from that