End of Contract
Handing back a lease vehicle is simple when you know what to expect. Here's how collection works, how condition is assessed, and how to avoid charges altogether.
Your options as the end approaches
A few months before your contract ends, we'll be in touch to plan ahead. You have three options:
- Hand the vehicle back and lease a new one. The most common choice - we'll have your next vehicle quoted and ordered in good time so delivery and collection can happen seamlessly.
- Hand the vehicle back and walk away. No obligation to take another vehicle. The funder collects the car free of charge and the agreement ends.
- Extend your current lease. Many funders offer formal or informal extensions - useful if your next vehicle is on factory order. Ask us and we'll arrange it with the funder.
Remember: with contract hire there is no option to buy the vehicle at the end of the agreement.
How collection works
The funder (or their agent) arranges a collection appointment at your home or workplace, free of charge. The driver inspects the vehicle with you, records its mileage and condition, and both of you sign the collection report. Before they arrive:
- Clean the vehicle inside and out a few days ahead - a clean car allows a fair inspection, and any hidden marks can be dealt with before collection rather than charged after
- Gather both keys, the service book or digital service records, charging cables (EVs), parcel shelves, and any accessories that came with the vehicle
- Remove all personal belongings - check the boot floor, glovebox and door pockets
- Ensure the service schedule is up to date and any outstanding recalls have been done
Fair wear and tear - what's acceptable
Lease vehicles are assessed against the BVRLA Fair Wear and Tear Guide, the industry standard used by all reputable funders. The principle is simple: normal use is expected and accepted; damage is not. As a guide:
- Usually acceptable: small stone chips consistent with motorway use, light scratches that polish out, minor scuffs on bumper corners, and carpet wear consistent with age and mileage.
- Usually chargeable: dents, scratches through the paint, cracked or badly chipped glass, kerbed or damaged alloy wheels, tears or burns in upholstery, missing equipment, and tyres below legal limits or with sidewall damage.
If you spot damage before handback, it's almost always cheaper to have it repaired by a reputable repairer than to be charged for it by the funder - we can point you in the right direction.
Excess mileage
If the vehicle comes back having exceeded your total contracted mileage, you'll be charged an excess mileage rate - a pence-per-mile figure set out in your finance agreement. If you can see mid-contract that you're going to be significantly over (or under), contact us: many funders will formally amend the mileage allowance, which is usually cheaper than paying excess charges at the end.
If you need to end the contract early
Life changes - and contracts can usually be terminated early, but the funder will make an early termination charge, commonly a substantial proportion of the remaining rentals. If your circumstances change, call us before making any decisions: options such as mileage amendments, extensions or negotiated settlements can work out better, and we'll help you compare them.