What happens If I change my mind about my vehicle lease agreement?
Sometimes, you start to have second thoughts about something. A house, a job, or your new car. It happens.
And we understand that sometimes you do change your mind about things, even your lease agreement. But, what happens when you change your mind about your lease agreement?
There are quite a few things that could happen. And while this is quite rare, it has happened in the past. So, we’re going to talk about what happens if you change your mind about your lease agreement at the different points of the order.
What happens if I change my mind about my lease agreement before my car has been delivered?
If you change your mind before your car has been delivered, then there are a few things that could happen. There are different stages in which you can change your mind.
If you want to change your car before it has been ordered from the dealership, then you can do so. In regards to our process, this will be at no extra charge to you as long as you are ordering another vehicle.
If you want to change the car after the car has been ordered from the dealership, then you may face charges. Say you have ordered a BMW but you’ve changed your mind and want an Audi instead, then the dealer now has a BMW without an owner. So, there may be dealer charges.
If you want to change your finance agreement before you take delivery then you can do so again at no extra cost to you. You will, of course, have a revised quotation with your new agreement, so the price may change.
The vehicle is only ordered once the finance has been approved. After that, you have what is called a cooling off period. This is 14 days in which you can change your mind about the finance agreement at no charge to you. This only applies if you are a ‘regulated’ customer, however.
You are regulated if you are a:
- Private individual
- Sole trader
- Partnership with less than 4 partners
If you are unregulated you do not have this cooling off period. You are unregulated if you are a partnership with more than 4 partners or a Ltd. Company. This means that once you sign, your order stands. If you cancel after that then you are likely to incur charges.
What happens if I change my mind about my lease agreement after my car has been delivered?
Okay, what happens if you change your mind after your car has been delivered?
This depends on the finance house, and what you actually want to change your mind about.
If you have a contract hire and you decide that actually, you’d like to buy the car, then this is what you can do:
- Contact the finance house and get a purchase price.
- It should be noted that not all finance houses do this, but most of them do
- Then, you can contact a vehicle broker and ask if they will finance that purchase price
If you change your mind about the actual car, then you’ll have to cancel your agreement. Lease agreements aren’t really designed to be cancelled, so it can get quite complicated. If you have a contract hire then you will have to pay an early termination fee. This will be outlined in your terms and conditions. If you accept that fee, then you can pay it and they will pick up the car. You will still be subject to mileage and condition charges.
If you have a personal contract purchase, then what happens depends on how far along in your contract you are.
If you have a regulated agreement and you have paid 50% of the total payable, you can use your termination rights and hand the vehicle back to the finance house.
Is there a time limit to cancelling my lease agreement?
The finance agreement is not activated until the day of delivery. So, if you want to cancel your agreement or you change your mind then the ideal time to do this is is before the car is delivered. Of course, it’s never ideal but you know what I mean. Up until that point you will only have to cancel your car. While you will still face charges but because you aren’t cancelling your agreement then you won’t have as much trouble.
How much will the cancellation fees cost?
The cancellation fees vary depending on a number of factors. At OSV, the cancellation charges are usually 2 times the monthly rental, and any other additional charges. The cancellation fees depend on:
- How easy the car is to re-sell
- If the car has a confirmed build slot
- If the car is in stock
- How much your monthly payments are (or expected to be)
- How unique the car is
So, these can all play a part in how much the cancellation fee will be.
Who should I contact if I change my mind about my lease agreement?
If you change your mind about your agreement then you need to speak to your broker. They will advise you on what happens next. If you have taken delivery of the car then you should contact your broker but also the finance house. This is because, due to the Data Protection Act, your broker cannot end the contract on your behalf; you have to do it yourself.
What should I consider before cancelling my lease agreement?
Cancelling or changing your lease agreement can be long and arduous, and sometimes it’s not worth it. When you are thinking about cancelling or changing it, you should consider the following:
- Do you genuinely want to change your agreement or vehicle?
- You need to take everything into consideration, and not just go with a gut feeling.
- Is it financially viable for you to pay the cancellation charges?
- Do you have an alternative?
- There isn’t always going to be another car waiting for you in the forecourt. So, before you change your mind you need to make sure you have an alternative.
- Can the reason you’re cancelling your car be easily fixed?
- Sometimes people want to cancel their agreement because they can’t sell their old car. While we understand why people would want to cancel, but this can easily be fixed.
- The best thing to do before you decide anything is to speak to your broker. Then, they can advise you on the best route to go down.
So, you can change your mind. Depending on when you choose to cancel or change your order depends on what actually happens. The best thing to do if you are having second thoughts, however, is to talk to your vehicle broker. They will be able to advise you on the best route to go down.
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