A sad subject but death happens and it’s something you need to be prepared for
It’s a sad affair when somebody dies but it’s something we all know happens, so what’s the procedure in the event of the contract holder of a lease car dying?
Normally if the lease holder dies this is classed as an early termination of your contract and is treated as such.
Firstly, the lease company must be contacted to let them know that the lease holder has died. The lease company should then confirm what amount is still to be paid on the lease, how long is left and to discuss how the procedure works. If there’s a fee to be paid this will also be explained.
You could ask the lease company if there’s an alternative option to an early termination.
If there’s a co-signer on your lease agreement, the remainder of the lease term then becomes their responsibility and they will have to continue making payments on the deceased person’s vehicle.
If the agreement hasn’t be co-signed, then the deceased contract holder’s estate will be expected to continue paying the lease, or terminate the lease early.
An early termination figure will be agreed and requested, however in such sad circumstances the finance provider might waive the early termination fee, this all depends on each individual case.
A copy of the deceased contract holder’s death certificate may also be requested before the agreement can be terminated.
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