Leasing - General Discussion

Leasing - General Discussion

Author
Discussion

Alucidnation

16,810 posts

170 months

Thursday 5th November 2020
quotequote all
Daughter handed her lease back to BCA (was with ALD) beginning of September and she is going to be charged for a scuffed wheel.

Thing is, she hasn't received any notification of payment being required.

How long does it take for that sort of thing to normally come through?

Thanks

Mark V GTD

2,229 posts

124 months

Thursday 5th November 2020
quotequote all
Two or three weeks. VWFS charge less for a scuffed wheel than most wheel refurbishers anyway.

JohnRS4

304 posts

246 months

Thursday 5th November 2020
quotequote all
Just had a call from BCA driver. Will be arriving tomorrow morning and has to travel by public transport so who knows how long it will take him.

Gazzab

21,093 posts

282 months

Thursday 5th November 2020
quotequote all
Alucidnation said:
Daughter handed her lease back to BCA (was with ALD) beginning of September and she is going to be charged for a scuffed wheel.

Thing is, she hasn't received any notification of payment being required.

How long does it take for that sort of thing to normally come through?

Thanks
Nail biting. They might not charge at all or they might charge £50 (if vwfs).

Alucidnation

16,810 posts

170 months

Thursday 5th November 2020
quotequote all
Gazzab said:
Alucidnation said:
Daughter handed her lease back to BCA (was with ALD) beginning of September and she is going to be charged for a scuffed wheel.

Thing is, she hasn't received any notification of payment being required.

How long does it take for that sort of thing to normally come through?

Thanks
Nail biting. They might not charge at all or they might charge £50 (if vwfs).
To be fair, it was a Golf GTi and the nearside front wheel has a considerable amount of kerb rash and he put down a charge of £90 which we thought was very generous considering the state of it.

It was more a question of how long and how they collect the money and she just wants it all finalised.

smile

SmoothCriminal

5,061 posts

199 months

Thursday 5th November 2020
quotequote all
Alucidnation said:
Daughter handed her lease back to BCA (was with ALD) beginning of September and she is going to be charged for a scuffed wheel.

Thing is, she hasn't received any notification of payment being required.

How long does it take for that sort of thing to normally come through?

Thanks
Gave my golf back day before start of previous lockdown took them neigh on 5 months to invoice me for the damage

Alucidnation

16,810 posts

170 months

Thursday 5th November 2020
quotequote all
SmoothCriminal said:
Alucidnation said:
Daughter handed her lease back to BCA (was with ALD) beginning of September and she is going to be charged for a scuffed wheel.

Thing is, she hasn't received any notification of payment being required.

How long does it take for that sort of thing to normally come through?

Thanks
Gave my golf back day before start of previous lockdown took them neigh on 5 months to invoice me for the damage
Wow.

Oh well, I’ll tell her to expect a surprise letter at some point in the near future.

Cheers all.

smile

senwar

37 posts

149 months

Friday 6th November 2020
quotequote all
Hi all - posted this in a Volvo thread but pointed here

I have an XC40 on lease with 5.5 months left (Santander). Have received a quote and I've asked for collection to be 23 November as per the email received. I'm getting a new XC60 before the end of the month although may delay till after lockdown.

When the early termination costs came, it didn't equate to 50% from what I could see so asked for a breakdown. Was sent the following:

'The early termination fee is calculated based on 50% of the unadjusted rental which this would have been the amount before the initial payment is taken into consideration which reduced this to your agreed monthly rental. Upon the vehicle being returned during an early termination the credit control department would review the initial payment paid and dependent of how much was paid if applicable they would arrange for a pro-rated refund to be raised based on the days in possession of the vehicle. Below is a breakdown of the calculation used.

ET of £917.80 is 50% of unadjusted outstanding rentals: 1 x £1,934.10 + 35 x £322.35 divided by 36 months = unadjusted rental of £367.12 £367.12 x 5 - 50% = £917.80'

Am I right in reading that this may lead to a pro rata refund after I have made payment/returned vehicle? Or a pro rata refund will be calculated and deducted from £917.80?

If I'm working things out right, I have currently paid (ex-VAT) £11604.60. Total payment due over term is £13216.35 leaving £1601.75 remaining of which 50% is £805.88. However, using unadjusted figure above, 31 payments at £367.12 I 'should' have paid £11380.72, leaving £1835.60, and the £917.80 is half of that.

I did have a response on the Volvo thread saying '50% of (Total amount payable over duration of lease minus the amount you have already paid )
is what you owe them. I believe that they don't charge you VAT on termination fee, but I'm not sure about that'

Based on this, I'm sure it should be £805.88?

Any advice on how this works? Also, any comment/confirmation on the VAT statement?

Edited by senwar on Friday 6th November 13:18

jonwm

2,521 posts

114 months

Friday 6th November 2020
quotequote all
jonwm said:
Did anyone have a car collected last lockdown? Mine is due to be collected on Monday 9th, not a problem if it isn't but it needs an MOT on the 30th November and the collection company state that they won't pick up without a valid MOT.

So questions would be am I now liable for more payments and MOT if they don't collect it in November?

Appreciate this is a very first world problem and many are now plunged into desperate times again.
Just to follow up on this, it's still being collected Monday and he is travelling with a driver to take it somewhere.

Covid and travelling together must not apply this time round.

PenelopaPitstop

2,168 posts

133 months

Monday 9th November 2020
quotequote all
jonwm said:
Just to follow up on this, it's still being collected Monday and he is travelling with a driver to take it somewhere.

Covid and travelling together must not apply this time round.
It's travel for work.

jonwm

2,521 posts

114 months

Monday 9th November 2020
quotequote all
PenelopaPitstop said:
jonwm said:
Just to follow up on this, it's still being collected Monday and he is travelling with a driver to take it somewhere.

Covid and travelling together must not apply this time round.
It's travel for work.
I suppose yes, we aren't allowed to travel together at our work, they state gov guidelines!

jonwm

2,521 posts

114 months

Monday 9th November 2020
quotequote all
Cars got picked up, lets bear in mid here that this car is 3 years old and has done 13k miles, well under mileage 10k+ and it is immaculate, it has been polished several times since I've had it and not just saying this but it was pristine.

Got picked up on a "Dent and Finish" on the internal door, surprised to say the least so went out to check and they have hit me with £175 for this, apparently it happens when seat belts are closed in the doors, I have kids so probably has happened this way.

Can't believe I've looked after it so well and my kids have let me down at the last hurdle!!


quintonside

130 posts

44 months

Monday 9th November 2020
quotequote all
jonwm said:
Cars got picked up, lets bear in mid here that this car is 3 years old and has done 13k miles, well under mileage 10k+ and it is immaculate, it has been polished several times since I've had it and not just saying this but it was pristine.

Got picked up on a "Dent and Finish" on the internal door, surprised to say the least so went out to check and they have hit me with £175 for this, apparently it happens when seat belts are closed in the doors, I have kids so probably has happened this way.

Can't believe I've looked after it so well and my kids have let me down at the last hurdle!!

That's unlucky, both in terms of the damage happening and it being found on collection!!

quintonside

130 posts

44 months

Monday 9th November 2020
quotequote all
senwar said:
Hi all - posted this in a Volvo thread but pointed here

I have an XC40 on lease with 5.5 months left (Santander). Have received a quote and I've asked for collection to be 23 November as per the email received. I'm getting a new XC60 before the end of the month although may delay till after lockdown.

When the early termination costs came, it didn't equate to 50% from what I could see so asked for a breakdown. Was sent the following:

'The early termination fee is calculated based on 50% of the unadjusted rental which this would have been the amount before the initial payment is taken into consideration which reduced this to your agreed monthly rental. Upon the vehicle being returned during an early termination the credit control department would review the initial payment paid and dependent of how much was paid if applicable they would arrange for a pro-rated refund to be raised based on the days in possession of the vehicle. Below is a breakdown of the calculation used.

ET of £917.80 is 50% of unadjusted outstanding rentals: 1 x £1,934.10 + 35 x £322.35 divided by 36 months = unadjusted rental of £367.12 £367.12 x 5 - 50% = £917.80'

Am I right in reading that this may lead to a pro rata refund after I have made payment/returned vehicle? Or a pro rata refund will be calculated and deducted from £917.80?

If I'm working things out right, I have currently paid (ex-VAT) £11604.60. Total payment due over term is £13216.35 leaving £1601.75 remaining of which 50% is £805.88. However, using unadjusted figure above, 31 payments at £367.12 I 'should' have paid £11380.72, leaving £1835.60, and the £917.80 is half of that.

I did have a response on the Volvo thread saying '50% of (Total amount payable over duration of lease minus the amount you have already paid )
is what you owe them. I believe that they don't charge you VAT on termination fee, but I'm not sure about that'

Based on this, I'm sure it should be £805.88?

Any advice on how this works? Also, any comment/confirmation on the VAT statement?

Edited by senwar on Friday 6th November 13:18
I phoned Arval to ask a similar question on mine. They simply said its 50% of what you have to left to pay. I have 8 payment remaining, they said the charge would equate to 4 months. I'm on a 1+35 so there is no adjustment.

Re VAT, i think VAT is due as HMRC recently revised their position on termination fees and that they now treat it is a consideration for supply and as such taxable.

brittas14

98 posts

51 months

Monday 9th November 2020
quotequote all
senwar said:
Hi all - posted this in a Volvo thread but pointed here

I have an XC40 on lease with 5.5 months left (Santander). Have received a quote and I've asked for collection to be 23 November as per the email received. I'm getting a new XC60 before the end of the month although may delay till after lockdown.

When the early termination costs came, it didn't equate to 50% from what I could see so asked for a breakdown. Was sent the following:

'The early termination fee is calculated based on 50% of the unadjusted rental which this would have been the amount before the initial payment is taken into consideration which reduced this to your agreed monthly rental. Upon the vehicle being returned during an early termination the credit control department would review the initial payment paid and dependent of how much was paid if applicable they would arrange for a pro-rated refund to be raised based on the days in possession of the vehicle. Below is a breakdown of the calculation used.

ET of £917.80 is 50% of unadjusted outstanding rentals: 1 x £1,934.10 + 35 x £322.35 divided by 36 months = unadjusted rental of £367.12 £367.12 x 5 - 50% = £917.80'

Am I right in reading that this may lead to a pro rata refund after I have made payment/returned vehicle? Or a pro rata refund will be calculated and deducted from £917.80?

If I'm working things out right, I have currently paid (ex-VAT) £11604.60. Total payment due over term is £13216.35 leaving £1601.75 remaining of which 50% is £805.88. However, using unadjusted figure above, 31 payments at £367.12 I 'should' have paid £11380.72, leaving £1835.60, and the £917.80 is half of that.

I did have a response on the Volvo thread saying '50% of (Total amount payable over duration of lease minus the amount you have already paid )
is what you owe them. I believe that they don't charge you VAT on termination fee, but I'm not sure about that'

Based on this, I'm sure it should be £805.88?

Any advice on how this works? Also, any comment/confirmation on the VAT statement?

Edited by senwar on Friday 6th November 13:18
Sounds complicated! I’d recommend you discuss it with them as all the providers seems to use different calculations.

For example, I terminated an Alphabet lease early recently and they calculated it based on a ‘true cost valuation’, ended up paying about a third of what I was expecting based on the 50% rule. Plus they took into account my excess mileage (expected another £600 charge for that).

senwar

37 posts

149 months

Thursday 12th November 2020
quotequote all
Thanks both - I have spoken to them via email and won't lie, i'm still none the wiser!

I'm going ahead as have a new car coming but will certainly question this in more detail when the final cost comes through.

senwar

37 posts

149 months

Thursday 12th November 2020
quotequote all
brittas14 said:
Sounds complicated! I’d recommend you discuss it with them as all the providers seems to use different calculations.

For example, I terminated an Alphabet lease early recently and they calculated it based on a ‘true cost valuation’, ended up paying about a third of what I was expecting based on the 50% rule. Plus they took into account my excess mileage (expected another £600 charge for that).
I'd be happy with it being less that's for sure! Nice one there!

jabloko99

30 posts

78 months

Friday 20th November 2020
quotequote all
My car goes back 14/12.MOT due 15/12 should I just leave it to them?

griffster

172 posts

97 months

Friday 20th November 2020
quotequote all
High 'Deposit' / low mthly / average Credit Rating personal car leasing deals?

Whilst I am fortunate to have a solid financial bank acct audit trail for more than 6 mths and a credit reference from my property lease agent showing good 20 yr history, I havent returned elec role record for years - so dont conform to standard tick boxes (I also have evidence of living between 2 addresses, one leased and one owned for many years) -

I do however have solid evidence of substantial lease payment history and willing to pay up to half of a 2yr EV lease deal up front and minimise credit exposure to sub £250pcm, poss sub £200

I am looking for finance companies / leasing agents who recognise this offer is better than their typical exposure and offer terms that reflect this - any links plse?

Looking for something like the current E Nero lease, ideally at a little better rates to reflect up front payment of £3.5k

PenelopaPitstop

2,168 posts

133 months

Friday 20th November 2020
quotequote all
jabloko99 said:
My car goes back 14/12.MOT due 15/12 should I just leave it to them?
If something goes wrong and it's not collected on 14th, you will have to do the MOT then. Maybe return it 2-3 days earlier, to avoid any problems.

When I returned my last car, guy came to collect it and said he takes it home and drives it next day to auction site. So, one day of MOT validity could be a problem in such case.