Lease Settlement Fee Offer

Dr.Tom

Evening all,

Long story short................

I have a van on a commercial lease agreement with Permanent TSB being the finance company. Settlement fee on the van is 6k they tell me. Im planning on bailing out of the country in the new year. I phoned them and offered them 5k and explained my case. They were having none of it and demanded 6k. Do I push harder/ask to speak to someone higher up to try and get a better deal or what??

Eric Cartman

the van probably stands them 6k, you owe them 6k , the days of free money are over , you probably wont get far looking for discounts

Nonoperational

Why would they let you off €1k?

Drummerboy08

You owe 6k on a finance agreement, there is nothing you can do but pay it unless you want to default.

Shakeandbake!

It's probably easier to negotiate a deal when the outstanding amount is quite substantial, 6k is a relatively small amount in vehicle finance terms so they're less likely to move on it. Having said that, it no doubt differs from company to company. Keep haggling with them anyway and give them plenty of hard luck storys. You could also ask MABS for advice, they might help you in your negotiation with the finance co.

Drummerboy08

Shakeandbake! wrote: »

It's probably easier to negotiate a deal when the outstanding amount is quite substantial, 6k is a relatively small amount in vehicle finance terms so they're less likely to move on it. Having said that, it no doubt differs from company to company. Keep haggling with them anyway and give them plenty of hard luck storys. You could also ask MABS for advice, they might help you in your negotiation with the finance co.

There is no negotiating in it! The settlement amount is what it is, a settlement amount.

The OP took out a finance agreement, which he has to pay back. If he doesnt pay it back, he defaults, and loses his credit rating.

The bank are not going to take the hit because the OP has asked them to, trust me.

EPM

Is the van worth more or less than the settlement? I appreciate the commercial markets in tatters.

You owe what you owe unfortunately op

Dr.Tom

Wow 6 replies and maybe one constructive. I dont wanna default and I know what I owe but thats my situation. Wondering was anyone in that situation before???

Eric Cartman

Dr.Tom wrote: »

Wow 6 replies and maybe one constructive. I dont wanna default and I know what I owe but thats my situation. Wondering was anyone in that situation before???

by constructive do you mean 'gives me false hope of paying less than 6 grand' It was a good post and fair play to them for advising MABS , Id reccomend you go to them, they may be able to work out a payment plan , but you will be paying the full 6k , haggling is very hard to do on that amount and with a vehicle few people want to take off the banks hands. I advise you get a price for similar vehicles on carzone / donedeal , take the lowest price there and get the difference between that and 6k in cash, then sell the vehicle and pay off the finance company.

-Corkie-

Tell them take the van and keep the 6 grand....

blackbird98

unfortunately, there is no room for negotiation. They will want the lease settled in full. If you decide to pay 5k, they will chase you for ther rest, plus additional interest and fees. If you default, they will apply to the courts for a judgement to be registered against you, thus screwing up your credit rating. That judgement would be also be on the credit bureau, so this would show up on any future applications for finance.

As another poster said, is the van worth more than the outstanding balance? if so sell the van first, but be advised that if you try to sell the van, and the potential buyer does an hpi check, it will show up as finance outstanding and probably scare him / her away.

The best option is to clear the finance first.

Drummerboy08

EPM wrote: »

Is the van worth more or less than the settlement? I appreciate the commercial markets in tatters.

blackbird98 wrote: »

As another poster said, is the van worth more than the outstanding balance? if so sell the van first, but be advised that if you try to sell the van, and the potential buyer does an hpi check, it will show up as finance outstanding and probably scare him / her away.

The best option is to clear the finance first.

Hold on, is the van on Contract Hire (i.e. you hand the vehicle back after the last payment) or is it on Hire Purchase (i.e. you own the vehicle after the last payment is made)?

If it is Contract Hire, then the van is not the OP's to sell. The finance company legally own the van, so the OP cannot do anything with it.

If its on Hire Purchase, then yes the OP can sell the van, and pay off the balance, but its hard finding a buyer trusting enough to do this.

It sounds to be as if the van is on Contract Hire, which means the OP owes 6k before the van goes back. This basically means the standing cost, or the current market value of the van doesnt come into it, as the 6k relates to the balance of the finance, and not what the van stands PTSB.

EPM

Drummerboy08 wrote: »

Hold on, is the van on Contract Hire (i.e. you hand the vehicle back after the last payment) or is it on Hire Purchase (i.e. you own the vehicle after the last payment is made)?

If it is Contract Hire, then the van is not the OP's to sell. The finance company legally own the van, so the OP cannot do anything with it.

If its on Hire Purchase, then yes the OP can sell the van, and pay off the balance, but its hard finding a buyer trusting enough to do this.

It sounds to be as if the van is on Contract Hire, which means the OP owes 6k before the van goes back. This basically means the standing cost, or the current market value of the van doesnt come into it, as the 6k relates to the balance of the finance, and not what the van stands PTSB.

Was thinking along the lines of selling it and monies going straight to bank. OP hasn't mentioned anything about selling the van. From the sounds of it you're on the ball

bazzachazza

Remember you signed a legal document which clearly shows how much you owe including interest.

I have talked them down but that was many cars ago and they haven't accepted a lower amount on the last few cars when I wanted to pay it off early. Times are different now I'm afraid and the robbing B's will want everything they can get.

bazzachazza

Try selling as previously said but you might have great difficulty selling it in this climate and getting a good figure for it.

Buffman

Not sure of your exact circumstances OP, but this thread might be worth looking at.

http://www.boards.ie/vbulletin/showthread.php?t=2055601794