Lease Car....Advice Needed

D

dans6490

Active member
Two years into leasing a Nissan Juke, the wife got bored of it so I called Arval (lease company) to ask about early termination.

They said it would be approx £200 but couldn't say for certain as it depended on how long we had the car in the month when returned.

Signed the form with an indication of £200 as a fee.

Car inspected, no issues, collected by BCA. The car was clearly going to auction.

So a month passes and I think that maybe that's it, nothing more to pay. Until a bill for £725 arrives. I call Arval and they inform me for the first time that the car has gone to auction and hasn't made the required price and I'm liable for the difference!!!

I inform her immediately that this wasn't explained to me. I ask her what the reserve was and she doesn't know (understandably), so I ask her what would happen if it sold for £2k less than expected? She informs me that I would also be liable, had that been the case!

Anyway, I email a complaint and received a complaint reference, telling me they will be in contact. I heard nothing and started wondering if they had cleared the debt.

Not wanting to alert them to the lack of correspondence either positive or negative, I decided to wait it out, hoping it might have gone away.

So I've now received a final demand today but still no reply to my initial complaint. I've now sent a second email complaint which refers them to my un-responded first complaint.

Does anyone have any thoughts on where I stand on this?????

I'm currently thinking I will have to bite the bullet and pay up. I don't want my credit rating knackered up but at the same time don't think it's fair that i wasn't told how it worked. If I'd known it was a lottery as to how much the fee would be, I would never have agreed to the early termination.
 
I would dig out the contract and have a look as it must be listed on there, if not you aren't liable
 
The answer must lie in the T's and C' of the original lease contract. If you cannot decipher it speak to Citizens Advice or run it by your solicitor.
 
harrycodlife said:
The answer must lie in the T's and C' of the original lease contract. If you cannot decipher it speak to Citizens Advice or run it by your solicitor.
Click to expand...

Unfortunately, I haven't got my copy, searched everywhere for it.

It feels like the girl who gave the verbal quote over the phone, was "economical" with the settlement quote. Rather than saying

"approx £200" she should've said

"if the vehicle makes the expected sale price at auction it will be £200 but if not you will be liable for the shortfall".

I'm sure the t&cs will be show in their favour. Just feels a bit like the "hidden PPI" of the car leasing world.
 
Although it is probably in the T&Cs it should really be pointed out to anybody asking about handing back early.
I assume they have proof of what the car made at auction?
 
You really need a copy of the original contract which you signed as any early termination fees should be mentioned in the very small print. They could be perfectly within their rights so need to lay your hands on it. I would tread carefully as you could easy get into a pickle if you don't pay the fee, with a bad credit score, debt collectors and all. Hope it all works out.

Tim.
 
I'm about to do the same with a Juke Nismo I have on lease with Arval. Worse case they can charge the the remainder of the payments due on the lease, I only have 2 months left.
The email I received and termination form clearly states that it's an estimate and this value can go up or down. It doesn't mention the auction value on the form but does state in the email the final figure will be based on the car reaching its estimated value at auction.
 
A copy of the email...
Good afternoon,

As requested, please find attached, the Early Termination Estimate for vehicle YG14***, based on a mileage of 8900.

·         Please note, the ‘Estimated Cost To Early Terminate’ is before VAT (i.e. VAT will need to be added).

·         The vehicle will be sold at auction within 90 days, and this estimate is based on the actual sale price of the vehicle.  Please be advised that this is an estimate and the final invoice may go up or down.

·         Your rental period runs from 21st of the month to 20th of the month, if your vehicle is returned between these dates, your full rental remains due and payable as part of the Early Termination penalty.  You may wish to arrange to return your vehicle in time for the last day of the rental period to maximise the use of your vehicle.

·         If you receive an invoice and your vehicle has been returned prior to the start of the rental period, this will be refunded to you the following month automatically.

Please read the “Declaration” section carefully, and if you wish to proceed with this Early Termination, then complete the document, sign it, and return it to us. You may scan and email the document back to us.

Kind regards,
 
Declaration on the termination form...
Declaration
By signing this estimate it is my intention to terminate the contract
term for the Vehicle referred to above and that I am authorised to
do so by my company
- This document estimates the cost to early terminate the
contract term for the above Vehicle. It does not constitute a settlement
figure and is for your reference purposes only. After the Vehicle has been
returned to us and we have reconciled your account, we will send you an
invoice for any sums due under the terms of your agreement with us. In
preparing this estimate, we have assumed that you have kept to the terms
of your agreement with us
- In addition to the amount estimated above, we may send you an
invoice for any pence per excess mile rate, unfair wear and tear charges or
any other charges due under the terms of your agreement with us.
- If you sign this estimate, we will treat it as notice to terminate the
contract term and the notice period will begin from the day that we receive
a signed copy from you
- Until the Vehicle's contract term has been terminated (as set out in
your agreement with us), you remain responsible for making any payments
due to us, including rental payments and you must keep to your obligations
under the agreement
- We will not be responsible for your costs or expenses if the collection
or return of the Vehicle is delayed
- This estimate is valid at the date of creation
 
Just some advice - letters not emails of complaint! And send them recorded this way you have an audit trail of receipt when things go wrong.
 
Sounds like a licence to print money to me. They are not going to try that hard to get decent money for the vehicle if ultimately, someone (the customer), will make up the short fall.

I would argue that they should accept the original estimate as agreed.

H.
 
It's an estimate though. The future sale price is calculated when you take out the lease. They hand the car over to an auction company and from there on its out of the lease companies hands. What a car makes at auction is always going to be a gamble.
 
To be fair if you had to pay £700 odd I'd take it & run as I had to pay £2500 to get out of a 118d I was bored shitless with after 6 months :lol:
 
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