Terminating a personal contract hire lease early
Discussion
nonuts said:
Read the wording on the agreement? I know in PCP type deals there is normally a clause covering handing it back earlier but hire is likely different but still explained.
PCH is not a purchase agreement, it is a hire agreement. As others have already said, there is no way of getting out of one without penalty. angry jock said:
PCH is not a purchase agreement, it is a hire agreement. As others have already said, there is no way of getting out of one without penalty.
I'm not saying otherwise, what I am saying is read the contract that was signed, presumably by the OP. Unless you've read it I suspect you don't know what it says anymore than anyone else.I have heard of transferring the lease to someone else with the approval of the lease company, in this case BMW. The new leaser has to go through credit checks etc. There is a website called Swap-a-lease, but interested to hear if anyone has gone down this route.
There is only 10 months to run on the lease, but I have no use for the car anymore and it will just sit on the drive with the occasional use by Mrs - it's a 640d coupe. It's no big deal if I can't terminate, if I could, it would save me nearly £5000 though.
There is only 10 months to run on the lease, but I have no use for the car anymore and it will just sit on the drive with the occasional use by Mrs - it's a 640d coupe. It's no big deal if I can't terminate, if I could, it would save me nearly £5000 though.
BMW Finance are pretty flexible - you can request a settlement figure form them. They'll need you to provide the current mileage and will calculate an early termination fee based on that. You won't be able to hand it back for free; but the termination figure will be less than the total balance outstanding on the agreement. I don't think it's an exact formula with BMW finance but with our main lenders the early termination is approx. 50% of the remaining rentals.
rfoster said:
BMW Finance are pretty flexible - you can request a settlement figure form them. They'll need you to provide the current mileage and will calculate an early termination fee based on that. You won't be able to hand it back for free; but the termination figure will be less than the total balance outstanding on the agreement. I don't think it's an exact formula with BMW finance but with our main lenders the early termination is approx. 50% of the remaining rentals.
On a contract hire?nonuts said:
I'm not saying otherwise, what I am saying is read the contract that was signed, presumably by the OP. Unless you've read it I suspect you don't know what it says anymore than anyone else.
The wording or the exact document that he signed? No, but as they are pretty much industry standard and I work in that industry and have done for some years, I could take a fairly good guess at what it says.There is no hand back clause without penalty in contract hire.
Buster73 said:
A mate of mine leased an X5 , hand back time the guy pointed out some minor scratches , normal wear and tear in his eyes.
£1300 bill from lease company , not negotiable.
I suspect these things are negotiable, depends how big your balls are and whether you just say, you're not having the extra money and i'll see you in court.£1300 bill from lease company , not negotiable.
Edited by mercGLowner on Friday 24th May 16:35
mercGLowner said:
I suspect these things are negotiable, depends how big your balls are and whether you just say, i'll see you in court.
Be careful as you will have signed to say that the car will be to BVRLA standards on return. linky.More and more leasing companies are using this as a second revenue stream when cars come off the road. Its often worth finding a good cosmetic repair guy to come and have a look round the car before it goes back.
Hope that's of some help.
angry jock said:
Be careful as you will have signed to say that the car will be to BVRLA standards on return. linky.
More and more leasing companies are using this as a second revenue stream when cars come off the road. Its often worth finding a good cosmetic repair guy to come and have a look round the car before it goes back.
Hope that's of some help.
Perhaps I should have added...the 640d is spotless so that was a general comment and not one currently applicable to me! More and more leasing companies are using this as a second revenue stream when cars come off the road. Its often worth finding a good cosmetic repair guy to come and have a look round the car before it goes back.
Hope that's of some help.
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