If your company happens to go into administration/insolvency, and you have cars out with the Electric Car Scheme, it is important to let us know as soon as possible, so that we can support you as best we can. In the event of administration, companies are not protected under our Risk Protection and so the company will be liable for the Early Returns Fee of the vehicles.
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. This fee will be taken once collection has been successful.
What are the options for the EV?
In this scenario, there are a few options that are available:
The car can be returned to the lessor
If they are not interested in keeping the car, they can return the car straight to the lessor. We will assist in booking in the collection.
The employee can purchase the car outright from the leasing company
If an employee is very interested in keeping the car, they can purchase your EV outright from the lessor by getting in touch with them directly for this. The cost of this will be made up two aspects: the cost of the car + the Early Returns Fee.
What do I need to do if my company has gone into administration?
We recommend getting in touch with us as soon as possible so that we can support accordingly.
Can an employee transfer their vehicle from a Business to a Personal Lease?
Unfortunately, the lessors won’t be able to transfer cars from a Business to Personal Lease.
Summary: Who is liable for the Early Returns Fee?
In cases of administration, the company will be liable for the Early Returns Fee.