Van lease termination

[accebs]

Hi, i have a van which was bought new on a finance lease?? Basically deposit, 47 monthly payments, final baloon payment and then 15% of any future sale. Have now had this for 30 months but want to terminate the contract. Settlement is a bit more than the value and i'm hoping to just terminate and hand back. Obviously will be some fees incured although i dont mind that. Basically i want to know how to terminate and what i need to include in any letter etc. On the contract it says 'hire agreement regulated by the consumer credit act 1974'
All advice greatly appreciated.

[openmind]

If the contract states a 48 month length I'll doubt you can just hand it back. Talk to the lease company to find out your options.

[Paul Norman]

You cannot breach a contract unilaterally. There will be an early settlement disadvantage of some kind, which you will need to pay.

After 30 months, this may well be a bearable amount, as a significant amount of the contract has run.

You need to contact the lease company and get a settlement figure from them.

[accebs]

You cannot breach a contract unilaterally. There will be an early settlement disadvantage of some kind, which you will need to pay.

After 30 months, this may well be a bearable amount, as a significant amount of the contract has run.

You need to contact the lease company and get a settlement figure from them.

Havegot a settlement figure of £8250 +vat and then 15% when i sell on. Problem being i think the ven is probably worth £8k cash or 7k at dealer.

[James Smith]

When leasing your vehicle will rarely be saleable for anywhere close to the final instalment.

They always tend to load the end as this makes the monthly lease payments seem 'cheaper'.

Fundamentally you have to pay for the full cost of the vehicle over its life time plus interest for the credit, plus profit for the leasing company. How that is split up will vary on each lease but it all comes back to the same thing.