If I took a van on contract hire say business didn,t work after a year what happens with the van
Our expert Rob answered...
Hi Graham, it would depend on the type of agreement you decided to go for. If you have a contract hire then there will be an early termination fee which usually after the first year is 50% of the remaining rentals. If you took out a finance lease and you needed to terminate the agreement early you will need to sell the vehicle to a 3rd party and depending on the settlement figure at that time and of course the value of your vehicle will determine the cost if any. 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, Rob Cox.