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This is my 1st posting but I would really appreciate any help and advise?
I am currently in a lease agreement for a vehicle which is over 48 months and then has a final balloon payment.
Unfortunately due to the current climate I am going to find it a struggle soon to be able to carry on paying the high monthly instalments. I have looked on the internet and there are sites that advise that as long as you are 50% of the way through the agreement you can voluntarily terminate the agreement, my only query is can this be done on a lease agreement as most advice is about hire purchase and I have found nothing on lease purchase.
I have the terms of Lease Agreement but there is nothing under cancellation, ther ar over 17 headings, being consolidation, sales Agency, Return of Goods and Disposal, Repudiation and Termination all the others are not really relevant.
Car Leasing Early Termination
Salespeople may tell you it's easy to end the lease before your contract expires, but don't believe them. A leasing contract is fixed and may be expensive to terminate early. Usually most provider quote approx. a calculation of 50% of the outstanding payments, providing no less than 6 months remain on the car lease agreement. Personal contract purchase agreement offer slightly better option whereas you are able to sell the vehicle and pay of the settlement figure given at the point of wanting to early terminate. Whereas, with a Personal contract hire this option is not available, because your agreement is a hire agreement and doe’s not offer the same benefits, albeit the provider may offer you the vehicle to buy at their price.
Thanks, I take it from reading the information my only option may be to swap the lease and try maybe to downsize..... I presume that there is a fee for this too.
It depends on whether you primary and secondary rentals.. most lese agreements can only be closed by paying off the primary rental period ( which is the cost of the car in most cases).
You can try and swap the lease, it depends on the company and what type of agreement/lease you have.
If you have a Balloon payment at the end, this doesnt sound like a lease agreement, its either a Lease with a buyback, or a HP with a balloon.
Its best speaking to your lease company first to find out EXACTLY what sort of agreement you have, then look through your terms and conditon, or ask them to send out a copy..
I have looked on the agreement which I have, and it is through ING Lease The name on the agreement is Lease agreement, there was a 3 month rental deposit - then 48 monthly payments then 1 monthly payment of a balloon payment????
It does say within the Financial details Primary period of Hire..
I bet the baloon payment is enormous, this is your option to purcahse! or if you hand car back they will let you have another car and it will start all over again. sounds like its heads they win, tales you loose.
A lease agreement would not have an option to purchase or a ballon payment at the end.
If it is a lease it could be that the payment at the end is the Residual value of the car.
Witout looking at the agreement i couldnt tell you.
If it is a lesae agreement then the 3 month rental deposit, is just an INITAL payment, its not classed as a deposit as such, because you arent buying the car, you are only leasing it.
If it is a lease, and it mentions Primary rentals, then it should also mention Secondary rentals.
Basically you pay the monthly paymen for 48 months, this will cover the cost of the car ( if your intial payment and your subsequent 48 months payment add to the cost of the car then your secondary rentals after 48 months should be roughly one months payment spread over a year.
You then make these secondary rentals to the finance company but keep the car.
With a lease if you want to terminate it within the primary rental period then you will have to cover the cost of those rentals for the remaiing 48 months..
It depends on what tye of Lease agreement you have. A lease agreement with a ballon payment sounds like a buyback option tbh.
Some companies will have their Terms and Conditons on the back of the agreement, some have them as a seperate document that you read. Your signature on the agreement shows you have read and understood them.
ask your lese company for a copy of the terms and conditon if you havent got them and it should become clear... well once you understand it it will..
Any and all comments made are my sole opinion. these do not in any way reflect the opinions of any other company ether associated with myself or others.
Lease Agreement Termination
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