How would I go about Terminating my Lease Agreement?
If you want to discontinue your lease for any reason, don’t worry - there are some ways to get out of a leasing agreement if you feel the car is no longer meeting your needs or you cannot continue paying.
Option 1: Transfer your lease
Generally speaking, this option is only available between two limited companies.
The majority of leasing companies will not transfer a regulated personal contract to another user.
Option 2: Pay the penalty to break free of your lease
Depending on how desperate you are to end your lease, you can return the car back to the leasing company and pay an early termination charge.
Remember that you will still be charged any damage/rectification charges if applicable, and any excess mileage charges due.
Option 3: Contact Your Leasing Company
If you are struggling financially and feel as if you can no longer handle the weight of the monthly payments, get in touch with your leasing company.
Some leasing companies are willing to change the payment plan to match how much you can afford.
This ultimately means that they can lower your monthly payments for a couple months or even put a halt to your payments altogether.
However, this will only be temporary until you are able to resume your payments again. In this instance, they will likely ask you to complete a detailed income and expenditure form.
How early termination Fees are Calculated
Each contract type is different, which is why we advise customers to really have a thorough read through of the contract before putting pen on paper.
Different leasing companies will charge different termination fees.
Typically, this can be as low as 50% of outstanding rentals; however, the leasing company has the right to charge you at a rate agreed in their terms and conditions.
