Tag: Car Leasing Guide

Why you would want to get out of a Car or Van Lease

There are many reasons why people might want to terminate a Car Lease, as we dont know what the future may bring:-

Change in financial circumstances – your income may have reduced (or increased)
Change of job – loss of job, got a new job, been offered a company car
Change of lifestyle – you now need a different type of vehicle
Need a different sized vehicle due to change in family size
Starting a new business (or closing your business down)
Car leased for your employee who is leaving and not being replaced
No longer require a car – relocating or emigrating

So how do I get out of a Car Lease?

Well, no matter what other people may tell you, its not that easy!

After all, a Car Lease is a legally binding agreement which you have entered into for a period of usually 2 or 3 years, during which time the finance company expects to receive a certain amount of money in monthly payments based on their estimate of what the value of your car will be at the end of the term. If you want to break the lease and return the car, you are likely to face Early Termination charges which, depending on how much of the lease is still to run, could be as much as a few thousand pounds.

There are really only 2 ways to get out of your Car Lease Contract:-

Find someone willing to take over the payments on your lease agreement, or
Hand the car back to the finance company and pay the Early Termination fee

The process for transferring a Car Lease

The first thing you should do is check your Car Lease Agreement and, if necessary, speak to the finance company, to see if there is anything in the contract which prevents you from transferring a Car Lease to another person or company. Most finance companies will allow transfers to take place, subject to the person who wishes to take over the lease passing their credit check, and a Transfer Fee being paid. Once you find a suitable person who wishes to take over the lease, simply inform the finance company who will carry out their checks and raise the necessary documentation.

Factors to consider when transferring a Car Lease

Make sure the vehicle conforms to the Fair Wear and Tear conditions of the finance company before transfer, as anyone taking over the lease will not want to pay for any damage you have caused
You may have to pay the transfer fee yourself and may also have to offer the person taking over the lease a cash incentive, as even this would be much cheaper than if you had to pay an Early Termination fee
The lower the mileage and the more mileage left to run on the contract, the easier it will be to find someone willing to take over the lease

Benefits of taking over a Car Lease?

Taking over someone elses Car Lease is an inexpensive way of acquiring a nearly new vehicle, as there is no initial payment or set-up fee to make and you just start paying the monthly rentals. Furthermore, your commitment is less as you are signing up for a shorter term contract.

Breach Of Contract

Finally, if you cant find a suitable person to take over your Car Lease, it may be tempting to simply hand back the car and stop making the monthly payments. Under no circumstances should you do this, as the finance company will seek to recoup its losses, may sue for breach of contract, and have you pursued by a debt collection agency, all of which will severely limit your chances of getting credit in the future.

To find out more about Car Leasing, why not visit Car Leasing Guide where you will find lots of useful tips and information on leasing a car. You can also get a free copy of Car Leasing Secrets – How To Get The Best Deal Possible On Your Next Car Lease if you subscribe to our Blog.

Improve Your Negotiating Skills By Learning The Car Leasing Secrets

As with any major purchase or financial commitment, your ability to negotiate the car lease deal to your advantage could save you hundreds or, in some cases, thousands of pounds. For example, if you were able to reduce your lease rental by just 20 a month, you would actually save over 750 on a 3 year contract!

Dont get ripped off by unscrupulous dealers or brokers, who wont give you the full picture unless you ask the right questions!

Make Sure You Are Comparing Like-for-Like Quotes

The first thing to do is to decide exactly what you want and give the same specific information to each potential supplier from who you would like a quote. This is the only way you will be able to compare like-for-like quotes.

Secondly, make sure you find out exactly what is included in any quote you receive.

Most people will shop around in the hope of finding the best car leasing deals. However, this is not as easy as it appears. Some car leasing special offers look cheap at the outset but could turn out very expensive in the long run.

There are so many factors that affect the quotation you are given, which is why you must check it thoroughly when comparing it with others.

Things You Must Consider When Comparing Car Leasing Quotes

The main things to consider when comparing car leasing quotes are the type of contract you are being offered, the payment profile (i.e. the number of rentals required in advance and the contract term), and the annual permitted mileage.

In addition, it is important to find out if Maintenance, Road Tax, Breakdown Recovery and VAT are included in the price.

Finally, ask if there are any hidden charges or additional fees to be paid before your new lease car can be delivered.

Most of the above points have a significant bearing on the car lease rental that you are quoted, so you can see why it is vital to make sure you are comparing like-for-like with the quotations you receive.

When Is The Best Time For Leasing A Car?

In a nutshell, the best time to order your new lease car is when there are car leasing deals available, which is not necessarily at specific times of the year, but when certain situations arise in the marketplace.

Examples of this are when a current model is about to be replaced by a new one, when there is excess stock that dealers need to shift, or when manufacturers offer additional discounts or finance support to boost sales.

At times like these, you need to act quickly because such car leasing special offers do not last very long, as there is often very limited stock.

I hope these car leasing tips have been useful, and help you save money on your next car lease.

To find out more about Car Leasing, why not visit our Car Leasing Guide website where you will find lots of useful tips and information on leasing a car. You can also get a free copy of Car Leasing Secrets – How To Get The Best Deal Possible On Your Next Car Lease if you subscribe to our Blog.