- 2 Oct 2016 at 11:47 am #92809
My business went bust and I have a Ford Transit Connect on finance. Can i terminate the lease and give the van back to the dealer and will i have to pay any penalty? tks
- 5 Oct 2016 at 4:36 pm #92819
Hi Smithy. Your options will depend on the type of finance you have. If you have a PCP or HP, you may be able to voluntarily terminate the finance agreement (link to our sister site The Car Expert) and give the van back. This depends on how much you have already paid off, as you need to pay of 50% of the total amount payable to be able to VT the vehicle.
If you have a lease (contract hire or operating lease), you will have to pay a stiff penalty to end the lease early, which usually makes it a poor option for most.
I would suggest speaking to your accountant if you have one, or getting one if you don’t, to run through the options available based on your business circumstances and finance agreement.