When leasing a car through a contract hire agreement, there may be times when circumstances change and you need to return the vehicle earlier than expected. But can you actually do that? The answer is yes, you can return a contract hire car early, but it is important to understand the terms and conditions of your agreement and any potential costs involved.
The first step is to review your contract hire agreement carefully. Look for any clauses that discuss early termination or termination fees. These clauses may outline any penalties or fees that you could face for ending the lease early. In some cases, you may be required to pay all remaining monthly payments or a certain percentage of those payments as a fee for early termination.
It is important to note that returning a contract hire car early can also impact your credit score. When you sign a contract hire agreement, you are essentially agreeing to make payments for the full lease term. If you return the car early and do not pay all of the remaining fees, this could negatively impact your credit score. Be sure to discuss the potential impact on your credit with your lease provider before terminating the contract.
If you do decide to return the car early, you should contact your lease provider as soon as possible. They will provide you with instructions on how to return the car and may also discuss any penalties or fees that you may face. Most lease providers require notice of at least 30 days before the scheduled return of the vehicle, so be sure to plan accordingly.
When you return the car, it is important to ensure that it is in good condition. This means cleaning the vehicle, repairing any damages, and ensuring that all maintenance is up to date. Failure to do so could result in additional fees or penalties. Additionally, you should return any keys, manuals, and other documents related to the vehicle.
In conclusion, returning a contract hire car early is possible, but it may come with some penalties and fees. It is important to review your lease agreement carefully and discuss any potential impacts on your credit score with your lease provider. With proper planning and communication, you can terminate your lease agreement early and move on to your next vehicle.