Unable to afford end of lease mileage and charges

Grumpy_chap

Mildly_Miffed said:

£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...?!?

Well depreciation on any £50k car is going to be in that order of magnitude.  If this was a true lease, then the upfront will have been relatively low - 3 or 6 monthly payments.

It might be worth the OP checking the lease paperwork.
If this was a lease direct from Tesla, the standard terms are based on 10k miles per year, not 10k miles in total.  That will make a big difference to the OP as the excess mileage would then be only 7k miles at 15 pence per mile, so £1,050 + VAT = £1,260.
It may be that the OP has not leased direct from Tesla and / or did agree a reduced mileage limit at the outset.


With regard to the damage, the OP still has the car and has the option to obtain repair quotes and have the work done prior to vehicle return if this will be cheaper than allowing the lease company to resolve.


I am also unclear as to why the OP cannot claim for this damage under their insurance.  Most lease agreements require that fully comprehensive insurance is maintained in force plus how many individuals can afford to take the risk of no insurance on a £50k car.  It may be worth challenging whatever the reasons for the insurer to reject the claim were.  NCB can be sacrificed for a claim of £6k or thereabouts.

henry24

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

MattMattMattUK

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

henry24

I've just been looking online at Tesla model 3 and if they depreciate less than average I'd hate to own anything else, I can easily find 2 to 4 year old cars with up to 8000 miles at under half price and still they can't sell them and as for leasing a model 3 long range at 12000 miles per year for 3 years £1000 a month plus £3000 upfront so £39000 for a car you give back pure stupidity 

MattMattMattUK

henry24 said:

I've just been looking online at Tesla model 3 and if they depreciate less than average I'd hate to own anything else, I can easily find 2 to 4 year old cars with up to 8000 miles at under half price and still they can't sell them and as for leasing a model 3 long range at 12000 miles per year for 3 years £1000 a month plus £3000 upfront so £39000 for a car you give back pure stupidity 

A new car will lose between 40% and 60% of it's value after three years, Teslas generally sit at the 40-50% end of that range, in a like for like comparison (low mileage, one owner, good condition). Sports versions of main brands tend to depreciate fastest, as well as PHEVs, largely because of (potentially legitimate) fears around servicing costs of PHEVs. The rest depends on individual model reception, reliability etc.

Generally leasing a car is a very poor financial decision, as is buying any new car, luckily for those of us that only ever buy second hand there are millions of people who are more than happy to take that hit so we can buy the cars after. 

born_again

Levatorani123 said:

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.

No judgement here...

So why take the lease out when you already knew the mileage was too low for you?

All you can do is talk to them & ask. 
Once thing for certain your chance of any credit going forward is out of the window.

You really need to do a statement of affairs & post in the debt section. You will get good advice there, but it will not solve your issue on the car.

Why go to court to get a CCJ on the debt & stop any further debt.

Herzlos

If you can't afford to pay for any repairs to bring down the charges, then your only real option is to let them take the car back, dispute the charges and then make some agreement to pay. They probably won't be happy with £30/month unless you've already got a CCJ.

They won't carry out the repairs themselves, so the charges will be based on what they estimate the difference in value between a damaged and non-damaged car are.

What's your plan for a car in the future? buying the cheapest thing you can find for cash or are you eligible for motability via PIP?

Levatorani123

MattMattMattUK said:

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

Levatorani123

Herzlos said:

If you can't afford to pay for any repairs to bring down the charges, then your only real option is to let them take the car back, dispute the charges and then make some agreement to pay. They probably won't be happy with £30/month unless you've already got a CCJ.

They won't carry out the repairs themselves, so the charges will be based on what they estimate the difference in value between a damaged and non-damaged car are.

What's your plan for a car in the future? buying the cheapest thing you can find for cash or are you eligible for motability via PIP?

 AFAIK I am not eligible for motability, although that may change. 

I will have to do without somehow to begin with and then find something very cheap. 

My condition isn't permanent.. I hope... But it is unusual and hard to treat. 

cw8825

Levatorani123 said:

MattMattMattUK said:

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

If it’s the value inputted by yourself I would take that with a pinch of salt. 

I believe the way the systems is set up to quote is that anything that is used in the quote they give you an option/dropdown list but this is not confirmed?

hiw much have you under values by and how much did it save you?