0330 174 6768 enquiries@salsac.co.uk
What is Early Termination
Early termination in the context of car leasing refers to the act of concluding or discontinuing a lease agreement for a vehicle before the originally agreed-upon contract duration has been fulfilled. In traditional car leasing, lessees commit to a specific period, often expressed in months, during which they are responsible for making monthly lease payments and adhering to the terms and conditions outlined in the lease contract.
Early termination deviates from this contract by allowing the lessee to terminate the lease earlier than anticipated.
While this option provides flexibility for lessees who encounter unforeseen circumstances or changes in their needs, it typically involves certain conditions, fees, and consequences, which may vary based on the leasing company or funder and the terms of the specific lease agreement. These conditions and penalties are designed to offset the costs incurred by the lessor due to the premature termination of the lease.
Whats Included with Early Termination Protection?
Many of our partners offer Early Termination Protection options designed for different company sizes and different risk appetites. These help protect employers and employees from the financial risk of terminating a salary sacrifice lease before the contract end date.
As with all other elements of salary sacrifice, early termination protection can be tailored to suit your business requirements.
Early Termination Protection Generally Covers (terms & conditions apply)
Early Termination Protection | Included |
|---|---|
Parental Leave | Yes |
Dismissal | Yes |
Resignation | Yes |
Retirement | Yes |
Redundancy | Yes |
Reduced Contracted Hours | Yes |
Loss of Licence | Yes |
Long Term Sickness | Yes |
Career Break | Yes |
