Tesla Contract Hire - Advice on Ending Early

SJWILLS91

Hi,

Asking on behalf of a friend - currently has a Tesla on contract hire.

He's being made redundant at the end of May and as it stands at this time, he has no employment after this. He rents his home and the landlords are selling up in May so he will be "homeless" as of 5th May.

He has queried with Tesla what he can do in his circumstances and they have advised they can defer payments for up to 4 months, and collect all owed on the 5th month. He's explained to them his situation, and they've just reiterated to him the same. He explained he still may not have income come 5 months time so won't be able to afford to pay. They just reiterated the same.

He's asked about handing the car back early (still has 1.5 years left) and they said no, he needs to pay whatever he would pay between now and the end of his lease. There's no break clause in his contract. They advised he take a loan out to pay...again he explained that he can't do that as he has no income.

Tesla are now not engaging and are ignoring his emails and say they're unable to help over the phone.

Has anyone had any experience or know of any other options in what to do? Thanks in advance!

Browntoa

afraid Tesla are correct

the only option is to pay the outstanding balance of the contract

it may be a case of talking to one of the debt management charities to look at options

maybe ask this question on the debt part of the forum

SJWILLS91

Hi,

Asking on behalf of a friend - currently has a Tesla on contract hire.

He's being made redundant at the end of May and as it stands at this time, he has no employment after this. He rents his home and the landlords are selling up in May so he will be "homeless" as of 5th May.

He has queried with Tesla what he can do in his circumstances and they have advised they can defer payments for up to 4 months, and collect all owed on the 5th month. He's explained to them his situation, and they've just reiterated to him the same. He explained he still may not have income come 5 months time so won't be able to afford to pay. They just reiterated the same.

He's asked about handing the car back early (still has 1.5 years left) and they said no, he needs to pay whatever he would pay between now and the end of his lease. There's no break clause in his contract. They advised he take a loan out to pay...again he explained that he can't do that as he has no income.

Tesla are now not engaging and are ignoring his emails and say they're unable to help over the phone.

Has anyone had any experience or know of any other options in what to do? Thanks in advance!

TadleyBaggie

No need to create a second thread on this.

https://forums.moneysavingexpert.com/discussion/6663458/tesla-contract-hire-advice-on-ending-early

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6663466/tesla-contract-hire-advice-please

It sounds like he has a lease and not a purchase finance package so voluntary termination is not an option.

He needs to honour the agreement he has, taking advantage of deferral options as available.

Given that he is being made redundant, will he have any redundancy / notice pay?

His focus should be getting new employment. What is he doing in that regard? Why does he feel he will be totally without income?

What emergency fund does he have? This sounds like the time to use that resilience.

With regard to the rental property, has the proper notice been served? Has a court said he has to leave?

Has he investigated what benefits he might be eligible for?

He would benefit from visiting the DfW (debt free wannabe) area of the forum and prepare a SoA for current and future income bases. Having a clear budget is the first step to managing the way forward.

Altior

To put it bluntly this isn't Tesla's issue, and they aren't there to provide financial advice. If this is a PCH then that is the commitment in the contract. The T&C would need to be examined again, but most likely if the friend hands over the car early or the owner takes back possession, your friend will still be liable for the outstanding payments. So likely there is no advantage in not taking up the deferral option.

user1977

He rents his home and the landlords are selling up in May so he will be "homeless" as of 5th May.

Has he looked into this properly? More one for the home buying/renting board but he's not going to be homeless until/unless he's actually evicted, and that's unlikely to happen as quickly as that.

Grumpy_chap

Duplicate thread

https://forums.moneysavingexpert.com/discussion/6663466/tesla-contract-hire-advice-please#latest

SJWILLS91

Thanks everyone 😊. Originally posted this in cars, but was advised by another user to post in debt.

Completely agree it's not Tesla's issue. Thought I'd ask for him in case there were options he's not explored.

He's not the best with money, so has 0 savings. Notice on his rental has all been done properly in line with the contract, but he's not in a position to buy it. He did ask if they would consider month-on-month rental until it was sold, but they want him out to put it on the market...their choice I suppose 😅.

Thanks again all.

Flugelhorn

you are good to be helping him but it is s bit of an uphill struggle, sadly the job and house problems have all come at once - can't imagine what the monthly payments on the Tesla would be. He needs to look into some housing first - maybe someone's lodger? then job hunting and use the options mentioned by Tesla

Mildly_Miffed

Is he single, no kids? Then it should be relatively straightforward, if a bit of a blow to his self-esteem.

How much are the monthlies on the Tesla?
Can it be negotiated to a lower mileage, if he was using it for business use and mileage before?

Cut as many other outgoings as possible.
Get a room in a house-share, or a small flat. Move areas if need be.
Get a job, ANY job. Minimum wage for full-time is now £476/wk for 37.5hr. They're out there if he gets off his backside and looks without being picky.
Then spend non-working time on the "proper" job-search for something more in line with his previous career.