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Entering into a car lease agreement can be a significant commitment and sometimes circumstances change or second thoughts arise. Cooling off periods are in place in case of such scenarios. This guide will explain what cooling off periods for car leasing entail, including your rights, the legal timeframes and the procedures to follow if you decide to cancel your lease. Understanding these aspects can help you make more informed decisions and ensure you’re fully aware of your options should you need to reconsider your lease agreement.
A cooling off period is a time during which you can cancel your lease agreement if you decide that it isn't right for you, without incurring a penalty. It specifically relates to sales made at a distance, such as online, over the phone, or by mail-order, and 'off-premises' transactions.
It is wise to ask your lease provider about your cancellation rights prior to agreeing to the lease and if you have already signed your agreement you can find your cancellation rights under the terms and conditions of your contract. Certain conditions must be met, as outlined below.
Under the Consumer Contracts Regulations (previously covered under Distance Selling Regulations), any goods or services sold at a distance or off-premises are entitled to a minimum 14-day cooling-off period during which you can cancel your purchase and get your money back.
This only applies to personal leasing customers, sole traders, and small partnerships (those with three or fewer partners).
Such customers have the statutory right to cancel the contract without penalty and without giving any reason within 14 calendar days of signing the order pack and will receive a refund of the arrangement fee of £270 including VAT from Xcite, in full.
The cooling off period lasts 14 calendar days from the moment you place an order or enter into a contract by signing your finance documents.
If you wish to exercise your right to cancel, you must notify Xcite Car Leasing of your decision to cancel the contract by a clear statement in writing by post to:
Xcite Car Leasing
Milford House
41-45 Milford Street
Salisbury
SP1 2BP
or via email to: cancellations@xcitecarleasing.co.uk
You must include details of your full name, address, and details of the order you wish to cancel.
Please note, by exercising your right to cancel, you are withdrawing from the brokerage contract and the contract is terminated.
For consumers entitled to a refund of the processing fee, either in part or in full, refunds will be issued within 28 working days from the day on which Xcite Car Leasing receives the notification of cancellation.
If you have any further questions about our cancellation policy, please call us on 0330 221 0000 or find out more here.
Most finance providers don't allow delivery of the vehicle until after the cooling-off period has ended. However, some sanction it at the customer’s request, provided the customer signs documentation to agree that although they still have the right to cancel within the cooling off period, if they do so they must pay for the value of the service provided up to the point of cancellation. For example, if you had already taken delivery of a vehicle then changed your mind within the 14 day period, you would need to pay for collection and any usage charges. To return an Xcite vehicle within the cooling off period, contact a member of our team and they will be glad to assist you regarding next steps.
If you are considering cancelling a lease beyond the cooling off period it is worth knowing your options and the likely charges you will incur:
If you want to terminate your lease but are beyond the cooling off period it is still worth calling us to find out where you stand, since you will have one cooling off period regarding your contract with us, and another for your finance agreement with the finance provider. It may be that you still fall within the cooling period for one, if not the other.
For orders cancelled after 14 calendar days, the following cancellation fees will apply:
If you cancel your order after the 14-calendar day period but before you sign your Contract Hire or Personal Contract Hire agreement, you will receive a full refund, less a fee of £5.00, including VAT, This fee will be deducted from the £270, inc VAT, arrangement fee paid by the you at point of order.
If you cancel your credit hire agreement beyond the 14-calendar day period and after you have signed your Contract Hire or Personal Contract Hire agreement, Xcite Car Leasing will retain the full arrangement fee of £270, including VAT, to cover all costs and expenses incurred in arranging the credit hire agreement.
If the cancellation results from actions outside of the control of either Xcite Car Leasing, or, the customer, then reimbursement will be at the discretion of the company.
If you decide to end the agreement with the finance company early (after the statutory 14 days cooling off period), then they will make a charge to do so.
There are two key steps to minimising the likely scenarios in which you’ll need to cancel your car lease:
Be sure to conducting thorough research regarding the cost implications of the vehicle you are considering, so you can be sure it will be suitable for your needs and affordable for the duration of the lease. It is wise to use a budgeting app to get a realistic record of your monthly expenditure and evaluate how much budget you can realistically attribute to leasing a car. This will reduce the chances that you’ll need to cancel your lease for financial reasons.
It is important to take time out to properly understand the lease terms so that you know how much you’ll be paying and for how long. It is also worth understanding the criteria that need to be met when you return the vehicle at the end of the lease, including excess mileage fees and wear and tear charges. Take time to read all paperwork before signing as this will reduce the need to cancel the lease during the cooling off period, or beyond.
Yes, you can cancel your lease without penalty during the cooling off period.
You need to notify the leasing company (such as Xcite) in writing, via email (to cancellations@xcitecarleasing.co.uk) or a formal letter by post, within the cooling off period.
There will be no fees if you cancel your lease within the cooling off period, but it's best to review your lease agreement for any specific terms.
Yes, exceptions can apply if the vehicle was customised to your specifications or if you agreed to waive the cooling off period.
The rules regarding the 14 day cooling off period are the same for both business and personal leasing customers, apart from for businesses such as Limited Companies, Limited Liability Partnerships (LLP) and Partnerships with more than four partners. These businesses do not get the cooling off period.
If you have second thoughts about your lease agreement, promptly contact the leasing company to discuss your options within the cooling off period. Xcite customers can contact a member of our team here or by calling 0330 221 0000. We will be happy to clarify the position and assist you.
Yes, you can return the car during the cooling off period, provided you follow the proper notification process and understand that some usage fees will apply.
If you miss the cooling off period, you can explore early termination options, though these may involve fees and additional charges.
Check out one of our helpful guides or our explaination of leasing to get all your questions answered.
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