What happens at the end of a car lease?

18/05/2021

What happens at the end of a car lease?

There's one very simple process for those wondering what happens at the end of a car lease - and that is you simply hand your car back to the car leasing firm.

They will collect it for free and give it a quick check over.

The leasing company will appreciate that during ownership there will be some fair wear and tear damage that will also not incur charges.

But for more serious damage, you will need to pay for repairs.

Don't forget that when you return a car at the end of a lease that it needs to be below the agreed mileage figure.

If you have gone over the agreed mileage, then there will be an excess mileage fee to pay.

The car lease ends

Before the car lease ends, the car leasing company will be in touch to discuss:

  • Your options as to whether you want to lease a brand-new car
  • Where and when you want to hand your lease car over.

When the vehicle is collected, you'll need a collection address, your preferred time and date as well as your contact details.

It's also possible that if you want to drive a brand-new lease car that this could be delivered at the same time to avoid waiting a long time.

Handing a lease car back

The things to do when handing a lease car back to the car leasing company include:

  • Removing all of your personal items: Take time to ensure that all of your possessions are removed
  • Organising your car lease paperwork: You'll need the original documents to hand, a valid MOT certificate if you have leased your car for more than three years, plus the service history.
  • Provide the keys (including the spare!).

It's also worth checking the interior for any odours or stains and if there are any, it's a good idea to clean them.

If not, you could be looking at paying a bill for having the car professionally cleaned.

This means you should also check the exterior, particularly the paintwork for any damage, including scratches.

It might even be worth having this damage repaired before the car is returned.

Don't forget that you should check the alloy wheels before returning the car because these can become easily scuffed.

There's very good guidance from the British Vehicle Rental and Leasing Association (BVRLA) about the fair wear and tear guidelines so you can identify whether the damage you see is serious enough to be considered as fair wear and tear - or something more serious.

What happens if I exceed my mileage limit?

Since this is an agreed figure from the start of your lease, you will incur excess mileage charges.

Depending on the leasing firm, the prices will vary but may be just a few pence per mile.

If you have exceeded your agreed mileage limit, this bill could run into hundreds or even thousands of pounds.

The important thing to bear in mind is that the excess mileage will affect the car's value so it will be worth less as a result.

If after receiving your brand-new lease car, you realise that the mileage limit has been underestimated, you really should contact the leasing company concerned as soon as possible.

They may be willing to increase the mileage limit, but this will mean that your monthly payments will increase too.

The process when your lease car is collected explained

After telling the leasing company where and when you will be, someone will arrive to inspect and collect the car.

They will check your paperwork is in order, that the agreed mileage is within the agreed limit, and that there's nothing missing from the car itself.

The inspector will then check carefully for any damage that may have been incurred, and any undue wear.

As they do this, they will be filling out paperwork and you will have to sign this if you agree with it.

If there are any serious issues, they will be dealt with there and then and once everything has been checked and signed, the inspector will drive your lease car away.

As soon as they do so, your responsibility for your lease car will end.

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BVRLA
ogilvie
Novuna Vehicle Solutions
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AEVAL
Leasing Broker Federation
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