Vehicle LEASE TRANSFER

[Fozzle]

I am having problems with my van leasing company and carrying out a lease transfer.
Before I took out the lease I was careful to ensure that I went with a company that allowed full lease transfers were my circumstances to change. I eventually went with a certain company after they assured me I could transfer my lease and that it was a simple process, all I needed to do was find a qaulifying party and tey had to pass a credit check.
I am now looking to transfer my lease and have found someone wanting to take it over.
The lease compnay are now telling me that if I want to transfer then it is not simply a case of transfering over on the same monthly payment terms, but rather they need to get the van refinanced which will mean that the montly payments will go up. Whatsmore, they are not able to tell me what the new payments on the vehicle will be. I also have it in writing from the lease company that there would be no charges involved when I came to transfer the lease over, however in absence of an explanation as to why the monthly lease cost would go up (even though the van has done about 1/2 the budgeted mileage over the year) it appears to me that this is a charge.
To make matters worse, they have told me that the process will take up to 2 months to complete, when it takes just 2 weeks for them to deliver a new van.
In reality, this makes it impossible for me to transfer my lease firstly because I am not able to advertise the van unless I know what the new price will be. Secondly no-one looking for a van will be prepared to wait 2 months for the process to complete. And finally any increase in the monthly payment would push the lease up to well over market valuse for a new lease.
Please Help!!!!! Thanks

 

If you have it in writiting that the lease payments can be transferred ('Novated') to another party without additional cost, thenm that is the battle you need to fight.

My immediate guess is that the person who made that promise wasn't authorised to do so, as there will nearly always be a nominal novation charge.

I can't see why the process would take 2 months. Have they explained this?

 

[Lease4Less]

You can only novate (transfer the exact lease) from a Ltd company to another Ltd company. Most finance companies will charge a fee for this but it will be minimal (£200 + Vat)

If you are not a Ltd co and want to transfer the lease to a third party it does get more complicated.

The third party does need to pass a credit check, you will need to obtain a settlement figure and a new quote will have to be produced. (It may well go up, but on the same note it may well come down.) It will however involve a new contract and therfore there will be a deposit to pay.

This should have been explained to you when you took the contract out. Unfortunatley there are a lot of companies out there (I'm sure it's the same in most professions) that either deliberately give out false info to obtain the business, or just don't fully understand what they are selling. Are they a memebr of the BVRLA?

Telling you that it will take 2 months however it just plain rubbish. It will take no longer than 24 hours to obtain the new quote and a further 24 to establisg the credit line. After that it is down to how quick you and the third party return the paperwork.

 

[Fozzle]

It is with Network who are a leaseplan brand. If it is the case that the new party will have to pay the deposit and an increased rental then I can see no reason why anyone would want to take over my lease??? This was certainly not explained to me when I took the lease. Where do I stand legally with this???

 

[Lease4Less]

It is with Network who are a leaseplan brand. If it is the case that the new party will have to pay the deposit and an increased rental then I can see no reason why anyone would want to take over my lease??? This was certainly not explained to me when I took the lease. Where do I stand legally with this???

Hi Fozzle,

My company is a platinum franchise with Network, so we have a very good relationship with Leaseplan.

I could do with knowing a bit of the background on your agreement. i.e Type of contract, whether you are Ltd, Sole Trader etc...

To advise you further I could really do with having a look at the exact wording of the email you received from the leasing company you used when the contract was set up.

If you want to pm me I would be happy to do this.

 

[Fozzle]

I have lost a potential buyer for my business because of the lease co misadvising us about the timescales. I have been trying my best to fulfill my obligations to the lease co by transfering, but when my lease takes 2 months to get and is an overinflated price and a new van takes just 2 weeks this is impossibe. does anyone think that the van co dragging their heels in such a fashion constitutes some kind of obstruction and a possible justification for me to exit the lease????

 

[Williams lester]

I have lost a potential buyer for my business because of the lease co misadvising us about the timescales. I have been trying my best to fulfill my obligations to the lease co by transfering, but when my lease takes 2 months to get and is an overinflated price and a new van takes just 2 weeks this is impossibe. does anyone think that the van co dragging their heels in such a fashion constitutes some kind of obstruction and a possible justification for me to exit the lease????

Depends whether you are a sole trader or limited company I would think.

 

[Fozzle]

Thanks for your reply,
In what way would it differ???

 

[Lease4Less]

I have lost a potential buyer for my business because of the lease co misadvising us about the timescales. I have been trying my best to fulfill my obligations to the lease co by transfering, but when my lease takes 2 months to get and is an overinflated price and a new van takes just 2 weeks this is impossibe. does anyone think that the van co dragging their heels in such a fashion constitutes some kind of obstruction and a possible justification for me to exit the lease????

Have you had the amended figures yet? How much have they gone up by?

 

[Fozzle]

Just had them back gone up by £10 per month. However they are still unable to give a date as to when the transfer will complete and this buyer is getting very very itchy feet as he has deadlines too

 

[Hudson121]

My experience with lease contracts has been pretty much pleasant. I purchased a truck through a leasing contract that I found in the internet and I received all the documents which were genuine. After the lease tenure I returned the truck to the company without any further issues.

 

[familydayout]

These sort of problems arise all the time when dealing with vehicle rental company's mainly because of two reasons: A) The leaser didn't fully understand the terms of the agreement / the rental company didn't make them clear OR B) an employee make claims they either weren't authorised to make or they themselves didn;t fully understand the agreement terms.

I know someone who took out a lease from a long term van rental company and was assured of a simple lease transfer, but similarly he found out it was far more complex than promised when he signed the agreement.

The fact is, the terms of the contract must be adhered to. As others have mentioned, whether you are a sole trader/Ltd company/etc will affect the lease transfer. But it also shouldn;t take anywhere near 2 months to complete.

Good luck!