Cooling-Off Periods Explained

Prior to receiving your new lease vehicle from Nationwide Vehicle Contracts, you are entitled to a cooling-off period. But what precisely does this entail, how long is its duration, and what steps can you take to exercise your right to cancel?

To provide clarity on how cooling-off periods work, Nationwide Vehicle Contracts has compiled a comprehensive guide to answer all these questions and more.

In simple terms, a cooling-off period refers to the timeframe within which a customer (which includes you) can cancel the purchase of goods or services without facing any penalties. 

This primarily applies to transactions conducted remotely, such as online, over the phone, or through mail-order, as well as "off-premises" dealings, like face-to-face meetings that occur outside the trader's place of business.

In accordance with the Consumer Contracts Regulations, any goods or services bought through distance sales or off-premises transactions come with a minimum cooling-off period of 14 days. During this period, you have the right to cancel your purchase for any reason and receive a full refund.

Your cooling-off period commences the moment you place an order or enter into a contract, whether verbally or in writing, and continues for a duration of 14 calendar days.

It's important to be aware that there are situations in which the Consumer Contracts Regulations do not grant you the right to cancel. This includes instances where you physically visited the business's store or premises to arrange the service.

These rights are exclusively applicable to consumers, such as private individuals or partnerships with up to four partners, and do not extend to businesses like Limited Companies, Limited Liability Partnerships (LLP), and Partnerships with more than four partners.

A cooling-off period primarily benefits the customer by granting them a specific timeframe to thoroughly evaluate a product or service, as well as to review any relevant legal documentation and terms and conditions.

During this 14-day cooling-off period, it is advisable to utilize this time for a comprehensive assessment. This entails ensuring that the product, merchandise, or service aligns with your needs and preferences and that you have a clear understanding of any associated charges. In the case of vehicle lease agreements, this includes confirming whether this type of arrangement suits your requirements, if the chosen vehicle meets your criteria, and if you are fully informed about your responsibilities throughout the contract's duration. Additionally, it's essential to feel comfortable with the initial deposit, monthly payments, and any related fees.

The primary reasons for the existence of cooling-off periods are:

• Consumer Protection: They give consumers the opportunity to make informed decisions, especially in situations where they may feel rushed or pressured into a purchase.
• Preventing Unfair Practices: Cooling-off periods help deter deceptive sales tactics and protect consumers from making decisions they might regret later.
• Promoting Fairness and Transparency: These periods promote fairness in contracts by allowing consumers to back out if they discover unfavourable terms or conditions they were not aware of initially.
• Reducing Buyer's Remorse: They can reduce buyer's remorse and prevent consumers from being stuck with products or services they don't want or need.

It’s essential to review the specific terms and conditions of the lease agreement and understand the cooling-off period's details as they can vary between leasing companies and jurisdictions.

If Nationwide Vehicle Contracts is arranging your vehicle lease, it's important to understand that there are two distinct 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 are some key points to keep in mind about the cooling-off period for vehicle leasing in the UK:

• Duration: For eligible contracts, the cooling-off period 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, whichever is later.
• 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.

It's crucial to carefully read your lease agreement and understand the terms and conditions related to the cooling-off period. If you decide to cancel the lease within this period, do so in writing and keep a record of your communication with the leasing company. This ensures that you exercise your rights effectively and within the legal framework provided in the UK.

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

In order for Nationwide Vehicle Contracts to facilitate the agreement between you, the supplier, and the finance provider, a processing fee of £198, including VAT, is applied. This processing fee encompasses the expenses associated with orchestrating the sale, placing the vehicle order, securing the financing, and coordinating the vehicle's delivery.

In accordance with the regulations outlined in the Consumer Contracts Regulations, credit brokering agreements regulated by Nationwide Vehicle Contracts, which have been executed without any in-person interactions (such as over the phone or online), can be cancelled without any penalties and without the need for providing a specific reason, within a 14-calendar day period. This 14-day window for cancellation commences from the day you formally "accept" our quotation, acknowledge the Terms & Conditions, and review the IDD document. For online orders, this period initiates from the day you submit your order online.

It's essential to note that this legal entitlement extends to all regulated personal customers, sole traders, and partnerships with up to four partners. Agreements involving Limited Companies, Limited Liability Partnerships (LLP), and Partnerships with more than four partners fall outside the scope of regulation, thus exempting them from these particular rights.

You also have a cooling-off period with your finance provider. This specifically relates to your cancellation rights in regard to the consumer hire agreement.

Once again, in adherence to the regulations stipulated in the Consumer Contracts Regulations, consumer credit agreements under regulation, which have been established without any in-person interactions (e.g., over the phone or online), can be cancelled within 14 calendar days without incurring any penalties.

The duration of this 14-calendar day cancellation period may vary depending on the specific finance provider but typically begins either when the finance provider issues the finance documentation or when the customer signs the agreement.

It's worth noting that most finance providers refrain from delivering the vehicle until the 'cooling-off' period has concluded. However, there are exceptions where delivery may occur at the customer's request. In such cases, the customer is required to sign documentation acknowledging their awareness of their right to cancel. If they choose to cancel within the cooling-off period, they may be responsible for the costs associated with the services rendered up to the point of cancellation. For instance, if you take delivery of a vehicle and then decide to cancel within the 14-day cooling-off period, you may be required to cover the expenses related to the collection of the vehicle and any usage during that period.

Here are some tips for consumers on how to effectively utilize the cooling-off period when leasing a vehicle:

• Thoroughly Review the Lease Agreement: Take the time to carefully read through the entire lease agreement. Pay close attention to terms and conditions, including mileage limits, maintenance requirements, and any potential penalties or fees.
• Inspect the Vehicle: Physically inspect the vehicle during the cooling-off period. Look for any signs of damage, wear and tear, or issues with the vehicle's condition. Also test drive the vehicle, if possible, to ensure it meets your expectations in terms of performance and comfort.
• Document Any Issues or Concerns: Make a detailed record of any issues or concerns you discover during the inspection. This should include written notes and, if possible, photographs of any damage or wear. If there are discrepancies between the condition of the vehicle and what was described in the lease agreement, document these differences.
• Verify All Costs and Fees: Check that all costs and fees associated with the lease are clear and as agreed upon. This includes monthly payments, insurance costs, and any additional charges. Confirm that there are no unexpected or hidden fees that were not disclosed in the agreement.
• Understand Your Responsibilities: Familiarize yourself with your responsibilities as outlined in the lease agreement. This includes adhering to maintenance schedules, returning the vehicle in good condition, and abiding by mileage limits.
• Seek Legal Advice (if needed): If you have concerns about the lease agreement or encounter complex legal terms that are unclear, consider seeking legal advice from a qualified attorney who specializes in consumer rights or contract law.
• Review Cancellation Instructions: Carefully review the cancellation instructions provided in the lease agreement. Ensure that you understand the specific steps and deadlines for cancelling the lease if you decide to do so.
• Keep Records: Maintain copies of all correspondence and documentation related to the lease, including emails, letters, and agreements. These records can be valuable if any disputes arise.
• Communicate Promptly: If you decide to cancel the lease within the cooling-off period, notify the leasing company or finance provider in writing as soon as possible. Adhering to the specified cancellation process and deadlines is crucial.
• Consider Your Needs: Take time to reflect on whether the leased vehicle truly meets your needs and lifestyle. Consider factors like fuel efficiency, size, and features to ensure it aligns with your requirements.
• Consult with Others: If you have doubts or are unsure about your decision, discuss it with trusted friends or family members. Sometimes, an outside perspective can provide valuable insights.
• Compare Offers: If you have multiple lease offers or quotes from different providers, use the cooling-off period to compare them thoroughly. This can help you make an informed choice.

Following these tips, consumers can make the most of the cooling-off period, ensuring that they make informed decisions and exercise their rights effectively when leasing a vehicle.

Here are some potential problems to avoid during the cooling-off period when leasing a vehicle, along with tips on how consumers can steer clear of these hitches:

• Signing Waivers Without Full Understanding: Some consumers may sign waivers or additional agreements without fully comprehending their implications, which can limit their cancellation rights.
• Failure to Meet Cancellation Notice Requirements: Failing to adhere to the specific cancellation notice requirements outlined in the lease agreement can result in the forfeiture of cancellation rights.
• Not Documenting Vehicle Condition: Neglecting to document the condition of the vehicle during the cooling-off period can make it challenging to prove discrepancies later on.
• Ignoring Mileage Limits: Exceeding mileage limits outlined in the lease agreement can result in additional charges at the end of the lease term.
• Failure to Verify All Costs and Fees: Overlooking hidden or unexpected costs and fees can lead to financial surprises down the line.
• Rushing the Decision-Making Process: Feeling pressured to make a quick decision can lead to leasing a vehicle that doesn't fully meet your needs or expectations.
• Neglecting to Read the Entire Lease Agreement: Skipping over sections of the lease agreement can result in missing important terms and conditions.
• Not Seeking Legal Advice When Necessary: Complex lease agreements or legal terminology may be challenging to interpret without legal guidance, potentially leading to misunderstandings.

By being aware of these potential problems and taking proactive steps to avoid them, consumers can navigate the cooling-off period with confidence and make informed decisions when leasing a vehicle.

Should you decide to cancel your order within the 14-calendar-day grace period with Nationwide Vehicle Contracts, you will be eligible for a complete refund of your processing fee.

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

 In the event that you decide to cancel your agreement beyond the 14-day grace period and your documents remain unsigned, Nationwide Vehicle Contracts will withhold £50 including VAT. This amount is intended to cover all incurred costs and expenses associated with the arrangement of the credit hire agreement up to that point. This fee will be deducted from the £198 including the VAT processing fee, also known as the brokerage fee, paid at the time of your order.

However, if you opt to cancel beyond the 14-day grace period and your finance documents have already been signed, please be aware that you won't be eligible for a refund.

If you wish to exercise your right to cancel, you are required to communicate your decision to cancel the contract clearly in writing through either postal mail or email to the following address:

Nationwide Vehicle Contracts

Unit 9 Christie Way

Christie Fields

Manchester

M21 7QY

Email: [email protected]

You must include the following details:

• Your full name
• Address
• Details of the order you wish to cancel

It's important to note that by exercising your right to cancel, you are effectively terminating the brokerage contract. 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.