Cooling-Off Periods Explained

Before your new lease vehicle is delivered, you’re entitled to a 14-day cooling-off period. This means you can cancel your agreement within 14 days without facing any penalties. 

At Nationwide Vehicle Contracts, we want to make this process clear, so you know exactly when the cooling-off period applies, when it doesn’t, and what steps to take if you change your mind. We discuss: 

A cooling-off period is a legally protected window of time, usually 14 calendar days, during which you can cancel a purchase or agreement without penalty. 

This applies mainly to distance selling, including agreements made: 

• Online
• Over the phone
• By mail 
• Or during face-to-face meetings that take place off-premises 

Under the Consumer Contracts Regulations, goods or services purchased in these ways come with a 14-day cooling-off period. During this time, you have the legal right to cancel an agreement for any reason, and you’re entitled to a full refund. 

Your cooling-off period starts the moment you: 

• Place an order
• Enter into a contract (written or verbally) 

It’s important to note that not all situations are covered. If you physically visited the store or premises to arrange the service, a cooling-off period doesn’t apply. 

Also, these cancellation rights apply only to consumers, and not to limited companies, limited liability partnerships, or partnerships with more than four partners. 

Cooling-off periods are designed to protect customers, giving you time to carefully review your decision before committing to a product or service. 

This is especially important regarding car leasing, which is a multi-year, legally binding contract. During a cooling-off period, you can assess: 

• Whether a lease agreement suits your needs
• If the chosen vehicle matches your preferences 
• If you understand the finances, such as upfront payment and monthly costs

They also provide customers with: 

• Customer protection - Helping you avoid rushed decisions or pressure selling 
• Preventing unfair practices - Reducing the risk of aggressive sales tactics 
• Fairness - Giving you time to fully research, uncover, and question any terms you weren’t initially aware of
• Avoid buyer’s remorse - Letting you walk away if you change your mind

If Nationwide Vehicle Contracts is arranging your vehicle lease, there are two cooling-off periods you should be mindful of: 

• Your cooling-off period with Nationwide Vehicle Contracts (for our brokerage service) 
• Your cooling-off period with the finance provider (for your consumer hire agreement) 

Here’s what you should keep in mind regarding your cooling-off period when leasing a car:

• Duration - For eligible contracts, the cooling-off period with the finance provider lasts for 14 days starting from the day after you receive the copy of the signed agreement or the day after you take possession of the vehicle, depending on the finance provider. 
• Cancellation process - To cancel the lease during this period, you typically need to provide written notice to the leasing company. It's essential to follow the cancellation instructions outlined in your lease agreement.
• Return of the vehicle - If you decide to cancel the lease, you'll usually need to return the vehicle in the same condition it was when you received it. Any mileage or wear and tear within reason may be accounted for.
• Financial considerations - While you can cancel the lease during this period, you might still be responsible for any costs incurred during the time you had possession of the vehicle, such as insurance or road tax.
• Exceptions - There are some exceptions to the cooling-off period, such as if you have specifically requested early delivery of the vehicle or if you've signed a waiver of your cancellation rights. Always review your lease agreement for details.

The first cooling-off period relates to the time you have to decide whether or not you wish to use Nationwide Vehicle Contracts' brokerage service. 

For Nationwide Vehicle Contracts to facilitate your agreement, a processing fee of £357, including VAT, is applied. 

In accordance with regulations outlined in the Consumer Contracts Regulations, brokering agreements regulated by Nationwide Vehicle Contracts, which have been executed without any in-person interactions, can be cancelled without penalties within 14 calendar days. 

For more information, check out our guide, Your Cancellation Rights. 

In addition to your rights with Nationwide Vehicle Contracts, you’ll also have a cooling-off period with your finance provider. 

Once again, under the Consumer Contracts Regulations, any consumer credit agreement arranged without in-person interactions can be cancelled within 14 days without incurring any penalties. 

The exact 14 calendar day cancellation period may vary depending on the specific finance provider, but typically begins when the finance provider issues the finance documentation or when the customer signs the agreement.

It’s worth noting that most finance providers will wait until the cooling-off period ends before delivering your vehicle. However, in some cases, you can request an early delivery. If you do: 

• You’ll be asked to sign a document acknowledging your cancellation rights 
• If you cancel after delivery, you may need to cover certain costs like collection fees and usage charges

The 14-day cooling-off period is your chance to make sure the lease (and the vehicle) are right for you. Here are some helpful tips to guide you through the process: 

• Review the contract thoroughly - Take time to read every section and pay close attention to mileage, maintenance, and early termination fees. 
• Inspect the vehicle - If your vehicle is delivered during the cooling-off period, look for any signs of damage and take it for a drive to check performance. 
• Document any issues - If something isn’t right, make a clear record. Take photos, write down any concerns, or note any mismatch between the car and what was agreed. 
• Double-check costs - Verify that all charges match what was discussed and agreed. 
• Know your responsibilities - Make sure you understand your obligations for servicing and maintenance, mileage, and fair wear and tear. 
• Seek legal advice (if unsure) - If you’re confused by legal terms or the agreement itself, it's wise to seek legal advice. 
• Understand how to cancel - Check the agreement for cancellation instructions. 
• Keep all correspondence - Save copies of every document, message, and email you receive. 
• Talk it over - Feeling unsure? Chat with someone you trust. A second opinion can often help clarify your thoughts. 
• Compare your options - Use this time to compare terms and make sure you’re getting the best deal. 

Here are some frequent mistakes and how to avoid them: 

• Signing without fully understanding - Avoid signing an agreement unless you’re clear on what it means. A vehicle leasing contract is a long-term financial agreement and shouldn’t be played down. 
• Miss the cancellation deadline - Always follow the cancellation steps outlined in your agreement. Missing a deadline could invalidate your right to avoid penalties. 
• Not recording the vehicle’s condition - If something is wrong with the vehicle, record it. It makes it much easier to resolve. 
• Rushing your decision - Use the cooling-off period to take a break and evaluate. 
• Skim-reading the agreement - Every section of the lease agreement matters. Skimming it may cause you to miss important information. 

Yes, you can back out of your vehicle lease contract after the cooling-off period has expired, but expect some charges. 

If you cancel after the cooling-off period but before you sign your agreement, a cancellation fee of £178.50 including VAT will be retained by Nationwide Vehicle Contracts (deducted from your processing fee). 

If you cancel after the cooling-off period and after you’ve signed your agreement, Nationwide Vehicle Contracts will retain the full processing fee of £357 including VAT. 

If you wish to exercise your right to cancel, you must notify Nationwide Vehicle Contracts of your decision to cancel the contract by a clear statement in writing by post or via email to:

Nationwide Vehicle Contracts

Unit 9 Christie Way

Christie Fields

Manchester

M21 7QY

Email: [email protected]

For consumers eligible for a partial or full refund of the processing fee, refunds will be processed within 28 business days from the date when Nationwide Vehicle Contracts receives the cancellation notification.

If you have any further questions about our cancellation policy, please call us on 0345 811 9595 to speak to one of our leasing specialists.