If you are thinking about or have resigned from your role, we are here to support you through this process! When you resign midway through your lease, you will be charged an early termination fee. This fee depends on the length of your contract and time elapsed.
If you have Enhanced Resignation Protection included in your contract, then you may not be liable for the Early Returns Fee.
What is an Early Returns Fee?
An Early Returns Fee/Early Termination fee is a cost determined and taken by the lessor for the return of the car. This is typically made up of 50% of the remaining cost of the lease, but is subject to variation from the lessor and does not take into account any additional factors such as: excess mileage, damage above BVRLA’s fair wear and tear, and missing loose items. Any additional fees will be added on separately and is your responsibility to pay.
How do I know if I have Enhanced Protection Service in place?
You can check on the Employee Contract Amendment Agreement that you signed when placing your order with us and see in the table whether you are signed up with Enhanced Protection Service. Enhanced Protection Service will generally cover you in cases where you resign from your role midway through your lease and we here at The Electric Car Scheme will cover the fee. If you don’t have Enhanced Protection Service in place, you may not be covered in any resignation cases, and therefore you are liable for the early termination fee.
How long do I have to have had my car before I am covered by your protection?
You can see in the table in your Employee Contract Amendment Agreement how long you have had to have had the car for before you are covered. If you resign within that time, even with Enhanced Protection Service, you may not be covered in the case of resignation. If you resign outside of that time with Enhanced Protection Service in place, you will be covered by this protection and not have to pay the Early Returns Fee.
What do I need to do if I am thinking about resigning?
The best way to ensure a smooth and simple process is to let us know about your decision as soon as possible with a rough end date in mind. Letting us know the current mileage, if there is any damage above BVRLA’s fair wear and tear and if you are a smoker will help us determine the early termination fee with the lessor. Once you have officially resigned, we will need to see your resignation letter, the company’s official acceptance of the resignation and in some cases, the P45. We can then move onto the next steps in the process and work with your HR/Finance/Payroll team to get the car collected and sent back to the lessor.
Where should I keep my car when I’m planning on returning it?
We don’t recommend driving your car after your last day of work, as you may no longer be insured and so before your last day of work you can either decide to leave the car on company premises (if possible) with the permission of your company to do so, or you can keep the car at your property in the meantime.
Can I take my car with me to my new company?
If you have a new company that you are moving to after your resignation, we can help support with the transfer. If your current company and new company are happy to go ahead with this process, we then will need to set up our cost-neutral scheme at the new company (if they aren’t already set up) and begin the novation (transfer) process. There is a cost associated with novating a vehicle. We can help advise of this cost dependant on the lessor.
Your previous and new company will also have to agree to novate the vehicle and sign additional documents to enable the transfer. Your new company will also have to be accepted for credit by the same leasing company that your car is with. The novation timeline can vary but this generally takes between 2-6 months to complete from end to end.
Can I purchase my car?
If you are keen to keep your car after you have left, you can purchase your EV outright from the lessor. The cost of this will be made up two aspects: the cost of the car + the Early Returns Fee (even if you have Enhanced Protection Service in place.)
Can I transfer my car from a Business to Personal Lease?
Unfortunately, the lessors won’t be able to transfer cars from a Business to Personal Lease.
Summary: When am I liable for the Early Returns Fee?
You will be liable for the Early Returns Fee if you do not have Enhanced Protection Service in place or have resigned with or without Enhanced Protection Service in place within the denoted timeframe laid out in your Employee Contract Amendment Agreement. In cases where you are not liable, we here at the Electric Car Scheme will cover the Early Returns Fee.