I am half way through a finance lease on a pickup truck. I was recently told I was only able to sell the vehicle at the end to a third party, and definitely not be able to purchase it myself. Also, what are the penalties for handing a vehicle back before the end of an agreement.? Many thanks.
Our expert Richard answered...
Hi Judi, thank you for getting in touch.
Finance lease Early Termination:
If you are looking to end the agreement early, the finance company will add up all the payments you still owe, plus the final rental. You will then need to sell the vehicle to cover to cost. As an example, if you are paying £300 +VAT a month with 12 months left and an end payment of £6000 +VAT you will owe a total of £9600 +VAT. You will then need to sell the vehicle for as much as you can to try and settle this payment. I hope that helps and if there is anything else we can help you with then please let us know. Kind regards, Richard Wells.