Car Leasing & Your Rights When Cancelling

There's a number of different reasons why you may consider cancelling your lease car, if you've changed your mind, your financial circumstances have changed or you simply wish to know where you legally stand when taking out a lease, this guide contains all of the relevant information to help you make an informed decision based on different scenarios.

If you are already going through the leasing process or are currently leasing a car, you can find your cancellation rights under the terms and conditions of your contract. Cancellation policies may vary between finance providers, so it's important to check your documents as the first port of call. The process can also vary depending on whether you opt for a personal lease or a business lease.

Cancelling Before Delivery

I've paid my processing fee, been approved for finance and have signed my documents. Is it too late to cancel the lease?

Once you have signed your finance documents, there is a 14-day cancellation window which is commonly referred to as the cooling-off period. As a large majority of car lease deals are brokered over the phone, you are protected by Consumer Contracts Regulations, this was previously covered under Distance Selling Regulations, which has now been superseded by the former.

As our processing fee does not constitute part of your credit agreement, it is not subject to a refund under the Consumer Contracts Regulations. All Car Leasing will retain the processing fee, as this payment is for the service we provide to you. Exceptions may apply at the discretion of All Car Leasing.

But what if I'm a business customer?


There is typically no cooling off period for business customers, as the agreement between the finance company and your business is unregulated. However in some cases - if for example you were a Sole Trader, Non-Limited Company or Partnership (with up to four partners) - you are protected by the Consumer Contracts Regulations as this agreement is typically regulated, unless certain exemption criteria applies.

If you are a business customer and wish to cancel your order, All Car Leasing will retain the processing fee and apply a cancellation fee of up to 5% of the ordered vehicle's P11D value to cover the costs of services All Car Leasing have already provided and any financial repercussions the company may incur as a result of the cancellation.

Early Termination

'I'm in the last year of my lease and I'm considering handing my car back early'

You are entitled to terminate your agreement early at any point during a lease. However, one of the drawbacks of contract hire is that you are typically expected to pay 50% of the remaining amount owed on the agreement, however, early termination policies vary between each finance company and you are free request the quote to terminate early.

As an example, if you were in the last three months of your lease and have exceeded your mileage allowance, it may make more financial sense to hand the car back early and pay the early termination fee as opposed to keeping the car for the remainder of the agreement whilst adding even more mileage to the car.

On the other hand, if you wanted to hand your car back within the first year of your agreement, it's highly likely that the early termination charge will be very expensive and as a result, rarely done.

Regardless of when you return a leased car early, you will still be liable for any excess wear and tear fees on top of your early termination fee. Please note that early termination is at the discretion of your finance provider.

If you do go ahead and decide you want to return your car early, our end of contract guide contains everything to expect from the process.


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