What happens at the end of a lease?

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.

– 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)

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.)

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.

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.

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.

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.