Guy is dying. Car is leased. What are the options?

[JeS10]

So a family friend is dying. Cancer and it's terminal. He might have a few months. He leases his car from VW financial services. It's an Audi S1 but he pays over £400 p/m so I'm guessing he's got a huge mileage on it or something. Anyway, to pay off the lease they're wanting £7000. I'm guessing if he dies then this is just claimed from his estate. I know the lease could go into another name, but it's pretty steep on the monthlies for what it is. Presumably if they just cancelled the direct debit, the car would be repossessed and they'd chase up the £7000?

I'm not really sure what I'm asking, but the daughter of this guy is pretty confused about to do with his car.

[JeS10]

Thanks for the advice. As I'm clear you'll have understood I'm trying to help from a distance, and so I don't know what the terms and conditions of the lease are. I lease through VWFS, so might see what my terms are. My understanding is that the circumstances have been explained to finance company, but they're holding out for the £7k to end it early. Just wondering if anyone else has had experience of this. Clearly dying isn't something we consider when leasing.

[JeS10]

Some great advice, thanks very much. I didn't make it clear, but VWFS were contacted and told the situation but just didn't move on the £7k. I think this will be because of people using this as a means of getting out of the deal early. I guess the other, unsaid, thing here is that if they're going to be wanting the £7k regardless, my friend should transfer the lease and actually just use the car themselves for the remainder of the contract (as they'll get the money from his estate in any case). Things might change on presenting the death certificate. Also worth mentioning that the lease was acquired through a dealer; the dealer supplied the previous cars he had too.

[JeS10]

Not read the 4 pages, but just so you know VWFS haven't budged. Death certificate has been presented and they still want the money.

[JeS10]

The Moose said:

If they take the car back, then if there's any shortfall then surely they still have a claim on the chap's estate.

Just like any debt really - you can't expect creditors not to chase the estate if there is money there. Granted it's not pleasant, but it is business.

Exactly this. They're claiming £6100 from his estate. The direct debits have been cancelled. So yes, they'll be taking the car, and pursuing the money. Not impressed given what I've heard other finance companies doing in the same circumstances.

[JeS10]

TwigtheWonderkid said:

100% this. It's perfectly standard in the leasing industry. They'll take the car back, and terminate the lease with no penalty. They won't even ask for any monies re minor damage.

They were asked if they would do this, but unfortunately not. As people have noted death or no death, they'll be taking their money. It's maybe a good thing for people to consider, regardless of how bleak doing so would be.

As far as why I got involved, I was just trying to help out. I was also interested for interests sake. I'm not surprised that they're taking the money, personally.

[JeS10]

So a couple of months after the guy died, the car has went back (finally). The collection was a PITA. £7k paid back to VWFS, fair enough it's covered in the contract. Two weeks later there's the 'damage' charges - only £100 or so. The car had only covered a few thousand miles. It looked incredible, smelled pretty bad though - owner like to smoke, hence his death.