How Much Does It Cost To Break A Lease Agreement

9th April 2019

How Much Does It Cost To Break A Lease Agreement

Posted in Insider News On 09/04/19 By David Moffatt

So your about to lease a new car or van, but what happens if your circumstances change? Do you know how much it will cost to break a lease? Find out here..

Unfortunately like most people I don't have a crystal ball. So whenever I enter any type of contract I have to know what the termination charges are going to be. This is never truer when it comes to car leasing and contract hire. Before entering any lease agreement you need to know how much it costs to break a lease!

Circumstances Change!

Which ever way you look at it, whatever the contract term you have agreed to - your circumstances could change and the car you leased last year might not meet the needs now. [caption id="attachment_552" align="alignright" width="491"]

How Much Does It Cost To Break A Lease[/caption] It happened to myself a couple of years ago when we found out our son was going to have a little sister. At the time my wife had a Citroen C2 on lease, which just about took on board the never ending equipment young kids need at anyone time. So there was no way this car was going to be able to take our new baby and all the gear she needs. Time for a bigger car. I already knew how much it would cost to break a lease agreement, so could budget for the additional cost. In short, on top of the surprise that I was going to be a Dad again there wasn't the additional shock of the cost to break the lease of our current vehicle.

Break A Lease - How It's Charged

Every finance company charge different amounts when it comes to breaking a lease agreement, so it's always best to ask before entering the agreement what the early termination charges will be. Here is a quick breakdown of what a few of the main contract hire and leasing companies charge if you need to break a lease agreement:

Audi Financial Services - 50/60% of the remaining installments
Volkswagen Financial Services - 50/60% of the remaining installments
Mercedes Benz Finance - 95% of the remaining installments
BMW Finance - 100% of the remaining installments
Lex Autolease - 50% of the remaining installments

Please bear in mind the above figures are an average based on Business Contract Hire agreements. The figures may vary depending on the type of contract and the remaining term.

Don't Let This Stop You

Most finance companies will charge a fee if you break contract, this applies to car leasing, mortgages, mobile phone contracts....you get the picture. Don't let these potential charges put you off leasing a car, but it's important that you are full aware that they do exist! As previously mentioned, there are charges involved if you need to terminate your mortgage agreement during the initial contract period - but it wouldn't stop you buying the house...right? As always, I hope you have found this article helpful? Please take a minute to leave a comment or share the article using the social sharing buttons below. If you have any questions regarding car or van leasing please email me on d.moffatt@stablevehiclecontracts.co.uk and I'll get right back to you. You never know, it could be the title for my next blog post! If you have any questions or just want some straight talking advice please feel free to call our team on 0151 728 4711 or visit Stable Vehicle Contracts. If you are considering changing your lease car or van in the near future why not join the thousands of subscribers who already receive our weekly newsletter. Each week we aim to send out a selection of the very best contract hire & leasing offers in the UK!