Paying remaining lease payments
Discussion
My daughter has 6 months left on her personal lease with Arval on a BMW.
After a split with her partner she needs to apply for a mortgage. So wants to reduce financial commitments.
She has rang Arval and asked if she can pay them the 6 months left in one lump sum, they so no. She asked could she hand car back, yes but she has to pay remaining payments, ok expected. She also asked can she transfer to someone else, told no. She wants to keep the car, but no monthly payment.
So Arval is saying they want the 6 payments monthly, no lump sums, whether she has the car or not? Ideally she would like to pay the 6 months now and have less monthly outgoings which will affect her mortgage application
She has tried twice and tried to escalate higher. The two reasons given are money laundering? Also the monthly invoices are raised each month so can't pay 6months together.
The Arval monthly payment makes a £40k difference in what she can borrow.
Any advice gratefully received.
After a split with her partner she needs to apply for a mortgage. So wants to reduce financial commitments.
She has rang Arval and asked if she can pay them the 6 months left in one lump sum, they so no. She asked could she hand car back, yes but she has to pay remaining payments, ok expected. She also asked can she transfer to someone else, told no. She wants to keep the car, but no monthly payment.
So Arval is saying they want the 6 payments monthly, no lump sums, whether she has the car or not? Ideally she would like to pay the 6 months now and have less monthly outgoings which will affect her mortgage application
She has tried twice and tried to escalate higher. The two reasons given are money laundering? Also the monthly invoices are raised each month so can't pay 6months together.
The Arval monthly payment makes a £40k difference in what she can borrow.
Any advice gratefully received.
I've had the same from clients when asked if they could redeem their lease agreement early due to the impact on affordability......
If nothing can be done your daughter needs to target lenders who will ignore commitments ending in six months or less.........but they will ask what she will do for a car at the end of the lease, usually.
If nothing can be done your daughter needs to target lenders who will ignore commitments ending in six months or less.........but they will ask what she will do for a car at the end of the lease, usually.
Thank you for the reply. She is using a mortgage broker and he is saying he will try and explain the 6 months left on the lease as being a temporary outgoing. He has copies of the e-mails from Arval saying no. You mentioned some are better with 6 months left? What about Nationwide or Newcastle, any experience of their view on the last 6 months of commitment?
Is there no way Arval have to accept clearance of the outstanding amount?
Thanks again
Edit to add, she intends to buy a car cash, so no monthly outgoing on finance.
Is there no way Arval have to accept clearance of the outstanding amount?
Thanks again
Edit to add, she intends to buy a car cash, so no monthly outgoing on finance.
Mandat said:
What's stopping her from making the lump sum payment on account to the lease company anyway? Are they going to refuse payment and issue a refund?
That is exactly what they said. If they get the full amount they will take one month and return the excess. I just don't get it. My daughter spoke to someone higher, manager? Who said same thing. Sounds wrong to not allow all payments in advance when only 6 months to go.Gassing Station | Finance | Top of Page | What's New | My Stuff



