How Much Does It Cost To Break A Lease Agreement
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 ChargedEvery 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