what happens if a business cancels a van lease?

[Gervan]

The business no longer needs the extra vehicle. The 5 year lease has a year to run. It would really help the cashflow to have one less direct debit going out each month.
I've seen with HP advice that the vehicle can be handed back after a certain period of time. Can this be done with a leased vehicle too?

 

[mandelbrot]

I don't really have an answer to your specific question, but since I presume we're talking about a Finance Lease, if the cash flow can stretch to the completion of the lease might the value of the van at that point exceed the lease payments from now til then, and thereby justify seeing the lease out? i.e. you get the final 12 months' lease payments back (possibly with "interest") at that point... just a thought!

 

[mcaul]

If its a standard 5 year lease where you own it outright at the end of the lease, then the van is probably worth more than the lease balance.

In any case, it will probably be a case of selling the van and seeing if the selling price covers remaining lease.