Knowledge Bank

What Happens at the End of a Car Lease?

Every year more drivers choose to lease a car instead of buying one, and it’s easy to see why. Leasing a car means lower monthly payments and a wider choice of vehicles, and you don’t need to worry about selling the vehicle at the end of the lease. 

One of the questions we’re often asked at Tilsun leasing is, “What happens at the end of a car lease?”. If you’re considering leasing a car but unsure what happens at the end of the lease, you’re in the right place. We’ve put together this quick guide on your options at the end of a lease. 

What Happens at the End of Your Lease?

When you get to the end of your lease term, you will have a couple of options for your next step. The most common choice is to return the vehicle to the leasing company and select a new lease

Alternatively, if you’d prefer to keep the car for a little longer, you can speak to your leasing company and extend the lease. 

In the months leading up to the end of your lease, we’ll get in touch with you to discuss your options, arrange the collection of your car and help you find a new lease deal. 

We’ll arrange to collect the car at a convenient time for you and, if possible, arrange for your new lease car to be delivered at the same time. 

Charges at the End of Your Lease

In most cases, our customers can return the car to us, and that’s it. Unlike a Personal Contract Purchase (PCP), there is no balloon payment to make at the end of the contract. 

However, you may need to pay additional fees if you have exceeded your annual mileage allowance or there is damage that’s not considered fair wear and tear. 

Excess Mileage

Excess mileage charges on a car lease are designed to ensure you don't exceed the allotted mileage for your lease period. These charges can add up quickly, so you must be mindful of how much you drive. 

If you are going over the mileage limit during your lease, you should speak to your leasing company to see if you can increase your mileage allowance. Most of the time, your leasing company will be happy to increase your mileage. While you’ll need to pay more monthly, it could save you a lot at the end of your lease. 

Fair Wear and Tear

When you lease a car, you're responsible for keeping it in good condition. That means no dents, no scratches and no significant damage. But leasing companies understand that over the course of the lease, there will be wear and tear. 

Most leases include a clause that outlines what is considered to be normal wear and tear. This can vary from company to company, but it typically includes things like minor scuffs on the bumper or interior upholstery. As long as the damage is considered minor and doesn't affect the car's performance, it's typically covered under the lease agreement.

At Tilsun Leasing, we’re dedicated to treating customers fairly, and we follow the British Vehicle Rental & Leasing Association’s (BVRLA) Fair Wear & Tear guidelines. It’s a good idea to familiarise yourself with the policies before returning the vehicle, as you may be able to dispute charges if you receive any that should be considered fair wear and tear. 

What You Should Do to Prepare for the End of a Car Lease

Before you return your leased vehicle to a leasing company, there are a few things you should do to try to avoid any extra charges: 


    1. Check the exterior for any damage — if you see anything major, it’s worth considering getting it repaired as it could be more cost-efficient. 
    2. Check the interior — Look for any stains on the upholstery and ensure everything on the dash is working correctly. Again, if anything isn’t right, it’s a good idea to get it fixed before returning the vehicle. 
    3. Remove all your personal items.
    4. Have the car cleaned and valeted professionally.
    5. Get all of your paperwork in order.





With all of that complete, you’re ready to return the vehicle to your leasing company and find your next car lease.  

Find your next lease in Tilsun Leasing’s selection of personal car leasing deals suitable for all types of drivers. If you have questions about car leasing, contact the Tilsun Leasing team today by calling 03330 040 888 or emailing [email protected]

Novuna Vehicle Solutions
Lex Autolease
Leasing Broker Federation

Join our Newsletter

Join our newsletter to receive our latest offers & news

Tilsun Leasing is a trading style of Tilsun Leasing Limited. Tilsun Leasing Limited is a credit broker not a lender.

Tilsun Leasing Limited is authorised and regulated by the Financial Conduct Authority. FRN: 670872.
All our calls are monitored for compliance and training purposes.

Registered address: Tilsun Leasing Limited, Verity Court, Pochin Way, Middlewich, Cheshire, CW10 0GW.
Company Registered in England and Wales No. 4393228 Data Protection No. Z7014603 VAT Reg No. 400 8928 64

Tilsun Leasing 2022. All Rights Reserved