Thread: Business lease van with Nissan?

Our limited company has been leasing a van on a 3 year lease through Nissan which finishes this October. The company can not afford the monthly cost of the van any longer though and we need them to take it back. We are aware from reading the agreement that we could be liable for an early termination charge? Can they really do this, is there anyway to avoid paying for a vehicle we will no longer have?



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Hi there, I work in commercial vehicle leasing. Yes they can charge you early termination fees. The reason behind this is that when you took the lease on the van the finance company put a future value on the van (Future Residual Value or RV) The RV is normally set by an independent company called CAP. This is worked out on the mileage the vehicle will have done after 3 years and the make and model of the vehicle. The RV is the expected amount the finance company will achieve when the vehicle is sold at end of contract. So let's say you took the agreement on 3x35 payment profile at 10,000 miles per annum, but that you had actually done 20k per annum then this would directly affect the value of the vehicle and you would pay an excess pence per mile charge, normally between 5 to 10p per mile. Now for early termination on contract hire (operating lease) you will not be entitled to any voluntary termination rights as it's a lease and not HP. You would normally be expected to pay 50% of the remaining rentals as settlement providing the van is within your agreed contract mileage. You will not get any rebate if it has done less than the contracted mileage. You cannot sell the vehicle as you are not the owner of the vehicle. If the vehicle has any damage beyond normal wear and tear (see www.bvlra.co.uk) then you will be billed for this. I hope this clears things up for you.

I know this is an old lease but justin case it helps anyone else.

I had two cars which we no longer needed on lease but could not find a transfer.

The early return penalties are a lot so re-leased.com have a greta service where they act as an agent and find someone to hire them,.

One of the cars deals breaks even the other makes a profit.

So we end up with them off our books for a long period .