Thread: lease hire agreement

Can any one help?
I am named as guarantor for a lease hire agreement for a vehicle purchased by my ltd. company which has now ceased trading, the agreement is non cancelable and I have been paying the monthly payments up to now, some times late from the date due as I am a guarantor for the lease I would like to know if I notify the lease co. (PCF which from what I have read on other threads are not a very pleasant co. to deal with, and as I have already found out with their constant threatening phone calls up to 6 in a period of 2hrs. and the messages left on the answer machine "the vehicle has now been reported stolen") that the company has ceased trading will they reposes the vehicle or can the balance of the lease be transferred to me personally

The original contract was negotiated by telephone and e-mail I was never informed as to the various types of leasing available or in-fact witnessed the signing of the documents, I am now told that the agreement is a lease hire and not a lease purchase and that is not covered by the credit act could this fall under the miss selling of a finance package?, how ever I do poses a letter that at the end of the contract and for the nominal sum of £1000 the vehicle will be come mine

Any help/suggestions on the best way forward will be very much appreciated as I am now experiencing financial difficulties to keep up whit the payments and I would not like to loose the vehicle as I have paid 20 out of 60 monthly payments plus £4000+ up front payment

I pressume you have the lease terms and conditions and suggest you see a solicitor. sounds like legal minefield.

A lease only gives you the right to use the vehicle in respect of a regular and ongoing payment. It can never become your property. If the Ltd company cease trading, then the correct way forward would be to return the vehicle. Under the terms of the agreement, you would have guaranteed the amount to be repaid, but as the legal entity that took out the contract now no longer exists, you have no rights of use as you are 'only' the guarantor.

The special tax status that allows vehicles to be leased to firms cannot be rolled over to an individual, The correct way to do this would be to return the vehicle, where it would be sold, and you purchase it with good title and no strings.

Thanks Raymond for your post,

However I do have an e-mail were they say that the vehicle will be mine at the end of the lease period for the sum of £1000 and by the way there is no residual value set for the vehicle in the contract and stipulates that is no-cancelable, I was originally signing up to a HP agreement and I was advised by the comp. that lease hire purchase would be a better option as I was a LTD. comp. I now told that is lease only, hence the dilemma I can prove all the above by the paper work that was signed and afterwards altered

Sorry for the delay - I'd overlooked this thread. Leasing is a minefield, and there are countless variations, so what happens in your case will be defined by the type of agreement you have - 'leasing' as a term can be easily misused (as in 'HP') which are highly defined in what they do and do not allow - but can be mis-named and this leads to confusion.

As long as your contract, SPECIFICALLY states that have a right to purchase at the end of the term, you should be OK, but not otherwise.

Thanks for that, as you say its a mine field thank goodness that I requested in righting the fact that it would be mine on the payment of £1000 and they replied on an E-Mail that I printed to make sure that it didn't get deleted.