Ending the Agreement

A Finance Lease can be settled at any point during the term (although sometimes only after the first 12 months).

However, penalties for doing so can often be high: details will be set out in the terms and conditions of the agreement.

At the end of the primary period of the agreement, the customer must have fully paid all the rentals, including any balloon. The customer then has three options:

Continue to use: The Lessee can continue to use the vehicle for as long as they want on payment of an annual secondary period rental (commonly known as a peppercorn rental). This is normally the equivalent of one monthly rental. This option is not normally available where there is a balloon rental payable.