Leasing Hub
If you're new to leasing & want to learn about the process, Leasing Options' comprehensive guide has everything you need to know about first-time car leasing
What happens at the end of a lease?
Before returning a leased car, there are typically two options to consider:
- Select a new car lease deal
- Hand your car back and arrange for it to be collected
You can also extend your car lease for a short period of time, but if you’re planning to end your lease, our guide will answer any questions you have. Here’s everything you need to know about what happens at the end of a car lease:
What to expect when returning a leased car?
Whether you decide to hand your current vehicle back or look at another leased car contract, there are a few things to organise beforehand.
First, you’ll need to inspect the vehicle against the fair wear and tear policy. Leasing companies understand that the car may have minor dents and chips during the lease term, but anything beyond normal wear and tear may incur a repair fee.
Next, you'll need to arrange the collection of your leased car. Again, it's best to contact your account manager, who will be happy to assist. At this point, if you're not taking out another leasing deal, there's nothing left to do (unless there are excesses to pay).
If you're switching to a brand-new lease, you'll need to select the car you want and arrange the new contract with your account manager. Once completed, the normal delivery process will take place.
End of lease process
The process at the end of your leasing contract is as follows:
Arrange the collection of your car
The collector inspects the vehicle for any noticeable damage
You sign to confirm your agreement with the condition report and notes
The vehicle is taken away, and further inspection is carried out as per BVRLA guidelines
Any excess charges are invoiced and paid in full
Contract ends
Preparing for the end of your car lease
Before your car is collected, you must inspect your vehicle and ensure that key areas are covered. These include:
- Clean the vehicle inside and out
- Ensure you have all the documents – MOT, service handbook and owner's manual
- Remove all your personal belongings
- Make sure nothing is missing from the interior, such as the parcel shelf, spare tyre, etc.
- Inspect the vehicle for damage
If your contract includes a car lease maintenance package, your monthly payments may cover some of these costs. If you don’t have one, though, you’ll likely have to cover the costs yourself.
– Organising your leased vehicle’s collection
Your account manager will advise you on how and when to contact the finance company to organise the date, time, and location for the collection of your vehicle.
Usually, your vehicle will be collected from your home address or your place of work, whichever is easiest for you. Collection times are generally between 8 am and 6 pm, Monday to Friday.
– Necessary paperwork when returning your leased car
When returning a leased car, you must ensure the necessary paperwork is returned. This includes:
- Vehicle and owner's handbook
- V5 document
- Up-to-date service history
- Signed inspection report
- Valid MOT certificate (if applicable)
Tips when returning your leased car
Our top tips when returning your vehicle are to make sure that:
- The vehicle's service history and MOT are up to date, where applicable, and you have all the documentation to hand
- The vehicle is clean inside and out, so a thorough inspection can be carried out
- All keys and, where required, electric car charging cables and sat nav data card are present
- Any personal data is removed from the onboard computers
- The vehicle is in full working order, and no warning lights are displaying on the dashboard
- The vehicle has no damage to the bodywork and trim beyond acceptable levels of fair wear and tear
- The tyres meet the minimum UK legal requirement for tread depth, and there is no damage to the sidewalls
- The vehicle interior is free from stains, odours, and damage to the upholstery
- All windows are free from cracks, chips, or holes, and any required repairs have been done professionally
- All personal belongings have been removed, and car items are present and correct (such as the parcel shelf, headrests, spare tyre, etc.)
What happens when my car is collected?
At the end of the lease, you organise for your car to be collected. Once you've agreed on a date, the collector will arrive and inspect the vehicle.
At this point, they'll show you any areas of concern, and you'll see the condition report with notes detailing any issues. They will also give you a digital form to sign to agree on the report notes.
Once completed, the car will be taken away, and a more thorough inspection will be carried out. If anything arises from this, a final invoice will be issued. Once paid, the contract ends.
What happens if I return a damaged lease car?
All leasing contracts include a fair wear and tear policy. Leasing companies understand that a vehicle will experience normal wear and tear over its life, but if you incur excessive damage, charges apply at the end of the lease.
Fair wear and tear policies follow the BVRLA Code of Conduct. So your vehicle is dealt with fairly during the inspection. Minor damage is covered, such as small areas of chipping and a shallow scuff on the surface. However, major bumper scuffs, large chips and cracks are not covered.
Before returning your vehicle, it's best to check it against the policy. Make sure to check out the BVRLA guidelines to avoid paying extra for potential repairs. If you do notice damage, you can read Leasing Options’ guide to returning a damaged vehicle.
Can I contest lease damage charges?
As with any transaction, you are entitled to raise a dispute if you feel that the charges are unreasonable.
Under BVRLA rules, you have the right to pay for an independent, unbiased and qualified engineer to examine the evidence. The engineer’s decision will be binding on both you and the leasing company. If it is decided that the leasing company’s charges were excessive, they will be obliged to refund you the difference.
Extending car lease and lease renewals
If your contract is coming to an end and you want to continue leasing your car, you have the option to extend your car lease. This is an agreement between you and the finance company that extends the contract beyond its original period.
You can either request an informal extension or a formal extension. An informal extension allows you to continue leasing your vehicle in the short term, while allowing your company to recall it at short notice. Formal extensions are typically longer-term agreements that require finalisation through paperwork.
End of car lease FAQs
Below are some of the most common FAQs on what happens when you end a car lease. If you can't find the answer to your question, please contact us to discuss your car lease.
Do you get money back when returning a leased car?
No, you won’t get your money back at the end of your car lease. At the start of your agreement, costs are calculated over the term, and payments are made in equal instalments. Therefore, at the end of the lease, you will have paid it off in full, with no outstanding fees or credits.
Do you have to pay when returning a leased car?
If your vehicle is returned in accordance with the wear and tear and excess-mileage policy, no additional payments are required at the end of the lease. However, you may need to pay for repairs and maintenance if the vehicle sustains serious damage.
You may also have to pay a termination fee if you end your lease early, but most contracts have a ‘cooling-off’ period in the first 14 days where these costs do not apply.
What happens if I return my lease late?
If you return your car late, charges may apply for the period between the end of the lease and the return date. You may also incur a penalty charge. In addition, failure to return the vehicle is likely to result in its repossession by the finance company.
Can I change my leased car for another?
Yes, you can change your choice of leased vehicle during your contract, but you’ll typically have to pay an early termination fee or transfer your existing lease to another person. If your lease has already ended, you’ll be able to take out a different contract for a new vehicle of your choice.
What happens to leased cars when they’re returned?
When returning your leased car, your lease provider will inspect the vehicle for damage beyond the agreed-upon wear and tear policy. They will also check that the car is within its pre-arranged mileage limits. If there are no issues, you won’t have to pay any extra fees, and the car will return to the market for another driver to lease.
What happens if I don’t return a leased car?
The choice to return a leased vehicle depends on your contract type. Some leasing agreements allow the opportunity to purchase the car, while others do not. If you have any questions regarding buying a lease car at the end of the contract, contact our account managers for advice.
What happens if I exceed my mileage limit?
Your mileage is agreed upon at the start of your leasing contract. If you go over this amount, excess charges will apply. They are calculated on a price-per-mile basis as set out in your agreement.
Let's say you've agreed on 8,000 miles with an excess charge of 10p per mile but ended up driving 8,420 miles in total. Your total excess charge would be £42, as an example. If you need to increase your mileage during the contract, contact your account manager to discuss the options.
Find your perfect lease with Leasing Options
At Leasing Options, we’re committed to helping you find the best possible deal. No matter what you’re looking for from your vehicle, our friendly staff are on hand to make sure you find your ideal lease.
Still not sure whether leasing is right for you? Read our comprehensive car leasing guide to learn all you need to know about your options.
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