Not sure if this is the best place for this query but I will give it a go.

 

I have a Karoq Edition 4wd auto that I am leasing at the moment and I am more than happy with the car. I did the deal on the basis of 15,000 miles per annum which was needed mainly for my daily commute but, due to Covid and my employer changing work practises long term, it looks like my annual mileage will be a fraction of that figure (more than likely nearer 5K). Our work pattern, even after Covid, will be working from home as the default with probably a day in the office so cuts my commuting by 4/5ths.

 

Part of me is looking at the car and thinking that I might be better going through with a complete change of vehicle - I am tempted to buy a camper/day van as that would suit my lifestyle better and would be more affordable given the reduced work mileage. It was not an option with relatively high mileage but on low mileage it becomes increasingly more viable.

 

I know I can contact Skoda finance and vary the agreed mileage (which will reduce the monthly payment by quite a lot) but I am not sure how things go about early returns due to change of circumstance ( I am not in any form of financial hardship so no option to terminate for that reason). There is no information available online about it on the Skoda Finance site.

I returned my Yeti last August which was on a 42 month Skoda lease 4 months early. I saved 4 months of lease payment, and the dealer bought in the car from the lease deal to sell himself. As the mileage was low due to the lockdown and change of use with work, I also received £1500 from the dealer as part of the deal towards new car, as value was higher than lease assumed at that point.

 

As I was on a no interest deal  at the time although I looked into paying off the lease very soon after getting the car, as I only took on the lease due to substantial discounts which were not availabe for a cash purchase, there were no savings, so I kept my money invested and paid monthly.

 

Opposite with current car as it was offered with first 3 months free before paying anything, and a substantial discount if I took out a lease deal , but 4.5% interest from memeory. I paid in full shortly after collecting the car and ended the lease before the first payment was due and now own the car.

 

You must have the option to pay off the lease and keep the car? You can ask for a quote for the buy out cost as this may leave you with an asset worth more than the cost of doing this to exchgange for another car or even sell outright? Just asking for a quote does not commit you to doing anything and if your deal includes an interest payment you will make a saving on that element by law.

 

You can only do this though if you have the right deal. Other lease deals specifically deny you the right to buy the car at the end, although others can purchase it from the lease company.

In many types of lease, if you have made so many payments you can just return the car at no cost to yourself, and no cash back though. You need to read the small print

Edited 25 March, 20215 yr by kenfowler3966

Yes you can contact Skoda Finance for a settlement sum any time during the term of the agreement. You can then either keep the car, sell it privately or trade it in.

3 hours ago, kenfowler3966 said:

I returned my Yeti last August which was on a 42 month Skoda lease 4 months early. I saved 4 months of lease payment, and the dealer bought in the car from the lease deal to sell himself. As the mileage was low due to the lockdown and change of use with work, I also received £1500 from the dealer as part of the deal towards new car, as value was higher than lease assumed at that point.

 

As I was on a no interest deal  at the time although I looked into paying off the lease very soon after getting the car, as I only took on the lease due to substantial discounts which were not availabe for a cash purchase, there were no savings, so I kept my money invested and paid monthly.

 

Opposite with current car as it was offered with first 3 months free before paying anything, and a substantial discount if I took out a lease deal , but 4.5% interest from memeory. I paid in full shortly after collecting the car and ended the lease before the first payment was due and now own the car.

 

You must have the option to pay off the lease and keep the car? You can ask for a quote for the buy out cost as this may leave you with an asset worth more than the cost of doing this to exchgange for another car or even sell outright? Just asking for a quote does not commit you to doing anything and if your deal includes an interest payment you will make a saving on that element by law.

 

You can only do this though if you have the right deal. Other lease deals specifically deny you the right to buy the car at the end, although others can purchase it from the lease company.

In many types of lease, if you have made so many payments you can just return the car at no cost to yourself, and no cash back though. You need to read the small print

It reads like what you’re talking about is PCP, not PCH. Which is what I understand the OP to be talking about. 

It varies by lease company, and any deals you might have taken.

 

I have seen a company one that required 50% for each month early, but early repayment rates vary.

 

Recently most lease companies have been doing unadvertised extensions if you ask, for simple reason don’t really want them back when secondhand market is virtually closed and no one is buying.   I heard that a few thousand ex-lease cars have been parked at Rockingham, Northants.   There are probably other locations too.

 

So I suspect they won’t be very generous, (and of course you won’t be only one with reduced mileage), although they might allow you to buy your vehicle, or extend end date for same mileage.  
 

But ultimately you entered the deal and took a punt on your mileage, and the lease Co aimed to make money based on this.  So both sides are trying to maintain the financial advantage.   Sorry there is not going to be some free get of jail card for the tens of thousands in same position, so negotiate best outcome you can.

 

 

9 hours ago, kilted said:

 There is no information available online about it on the Skoda Finance site.

 

https://www.skoda.co.uk/owners/financial-services-account

 

You can access your agreement by registering with VW finance. You may well find your answer there.  I bought on PCP but settled a few days later - didn't have to speak to anyone, just registered with VW finance and the system gave me all the info I was looking for and  provided the settlement figure. I was quite impressed with the way it works.

 

9 hours ago, kilted said:

I am not sure how things go about early returns due to change of circumstance ( I am not in any form of financial hardship so no option to terminate for that reason). There is no information available online about it on the Skoda Finance site.

 

Best contacting them to get your options - depends on the type of finance you took out ( PCP or HP ) and how long the contract has been in place.

 

Typically you can end an agreement once you've paid off 50%. If you want out the agreement before that, you can, but you have to pay what's left up to that 50% figure.  The latter doesn't apply to HP.

 

Of course that's cancelling the agreement. If it's a PCP then you can settle the agreement - just ask for a settlement figure, buy the car then sell it again.

 

If owning the car outright is not an option and the agreement hasn't reached the 50% mark then as you say, it may well be a better option to reduce monthly cost by altering the mileage and keep it until 50% of the loan has been paid off.  

Edited 25 March, 20215 yr by Guest

All of the ins and outs of your lease should laid out in your contract which you should have gotten a copy of with the car.

 

I would think you'll be able to end the lease whenever you want but there will likely be a charge for an early termination. 

 

You really should see about getting your mileage allowance lowered and see how much you'll be saving, you might be able to afford both vehicles. You should have plenty of options anyway.

@kilted you need to let us know what your agreement is. Is it PCP, HP (I’m 99.9% sue it’s not) or PCH. The answer is wildly different depending on which it is.