What happens at the end of a car lease?

All good things come to an end and a car lease is no exception. But what actually happens when the car is collected and how do you prepare?

Read this advice guide to find out what you need to know.

• Car collection explained
• Do I need a MoT?
• What happens if my car is damaged?
• Can I contest damage charges?
• What happens if I exceed my mileage allowance?

When will the car be collected?

It always pays to keep a record of exactly when your lease car was delivered. You can easily add the lease period to that date to work out when the car will go back and mark the day on your calendar.

Most lease companies will contact you before the expiry date to arrange collection. But do not take for granted that yours will. If the date is looming and you have not been contacted, get in touch with the company yourself – some expect you to do so anyway.

If you have lost track of the return date, you should contact the company immediately. You do not want to get caught out and miss the date if it is your responsibility to arrange collection, as you could incur penalty charges.

The procedure for arranging collection should be detailed in your leasing contract. If you are in any doubt, contact the leasing company.
 

How do I prepare for the car to be collected?

Your leasing company should tell you what you need to do before the car is collected. As a rule of thumb, you should:

• Gather together all the paperwork for the car, including the V5C registration document, servicing/repair invoices, handbooks and service books
• Find the spare keys
• Refit any items you have removed from the car as such the luggage area cover, Isofix mounting covers, storage area covers, umbrellas, ice scrapers etc
• Clean the car inside and out

I’ve had my car for 3 years – do I need to put it through an MoT?

Yes. It is likely that the car was registered some time before you took possession of it, so it will need an MoT on or before its third birthday. As your name appears on the V5C, you will receive a notification from the DVLA that the MoT is due.

Since it is illegal to drive a car without an MoT, you have to get it tested – even if the car is being collected the next day. It will be your responsibility to arrange and pay for the test and any repairs that are needed. If you do not get a MoT for the car, you will likely incur a penalty charge from the leasing company, alongside any action the DVLA and/or police may take.

What happens when the car is collected?

At the appointed time, a driver will arrive to collect the car. They will check all the paperwork is in order, that nothing is missing from the car and that the mileage is within the limit. They will then inspect the car for any damage and undue wear in detail. There will inevitably be some paperwork to fill out.

Any issues should be dealt with there and then. If everything is in order, the car will be driven away and your responsibility for it ends.

Some leasing companies send someone out to inspect the car prior to collection. You should be informed if this is the case.

Some companies will send a transporter truck to collect the car. If you believe access to the agreed collection location is too tight for a truck, inform the company. They will either just send a driver or ask that the location changes.
 

What happens if I have damaged my lease car?

You should inform both the leasing company and your insurer immediately. When taking out the policy you should inform your insurer than the car is leased, and which company has provided it. The company will likely have preferred bodyshops and will co-ordinate with your insurer to have the car repaired by one of them.

When the car is collected at the end of the lease, the driver will closely inspect the car for any paint scratches, windscreen chips, kerbed wheels, torn upholstery, broken clips, missing parts, heavily worn tyres, etc, etc.

If the car has been subject to an insurance claim or is returned in a poor condition – minus reasonable wear and tear – you will incur penalty charges. Remember that a central part of a leasing company’s business model is selling your car on for the highest possible price. Insurance markers and damage reduce a car’s second-hand value and, as the one who was responsible for the car, it falls to you to bridge the gap in value.

Can I contest damage charges?

Yes. If you believe that any damage found constitutes reasonable wear and tear, you are being charged for damage that did not exist when the car was collected, and/or that the penalty charges are excessive, you should take the matter up with the leasing company.

If they do not or refuse to resolve the matter to your satisfaction, you should contact the British Vehicle Rental and Leasing Association (BVRLA), which offers a dispute resolution service.

Before the car is collected, take lots of photos of the car – close-up shots of every part of the bodywork, wheels, engine bay, interior and even behind the fuel filler/charging port door. Include detail shots of the main touchpoints like the door handles (inside and out), steering wheel, gear stick, pedals, seats, carpets, touchscreen and frequently used buttons. Don’t forget the tyre tread, either. You are building a cast-iron defence against any potentially erroneous damage charges.
 

I have exceeded my mileage limit

Unfortunately, there really is not any excuse for doing this – the limit should be burned into your brain. Exceed the limit and you will incur penalty charges. Depending on the leasing company, it could be a few pence per mile, or as much as a whole pound. Going a long way over could easily cost thousands.

As with damage, exceeding the mileage limit reduces the car’s value and it falls to you to bridge the gap. On top of the penalty charge itself.

If you have underestimated the mileage you will cover, you should immediately inform the leasing company. Any reasonable company should be willing to increase your mileage limit but that will, of course, increase your monthly payments. If you unsure about how to proceed, you should contact the BVRLA.

Can I extend my lease?

It depends on the leasing company. Some will let you extend the lease (you will probably incur a charge for doing so), while some do not allow it at all. Contact the company to find out.
 

What if I want to lease another car from the same company?

Then do so. Every company loves a returning customer and leasing companies are no different. If you arrange the new lease before the current one expires, any company worth its salt should be able to have the person collecting your current car arrive with the new car.

If in doubt – assume nothing. If you unsure about anything regarding when and how your lease car will be returned, you should always refer to your lease contract and/or get in touch with the leasing company. Make sure you tell them if you need to change the collection time/location, as well.

If you wish to dispute any penalty charges, you should take the matter up with the leasing company in the first instance. If they fail or refuse to resolve the matter to your satisfaction, or you believe they are acting unreasonably, contact the BVLRA.

If you treat the car well and prepare properly, the returning process should be seamless and painless.

Check out our other leasing guides for more information:

• Should you buy or lease your car?
• Advantages and disadvantages of leasing
• What are the extra costs of car leasing?
• Leasing jargon buster
• Should you lease a car through a dealer or a broker?
• Does leasing a car affect your credit score?
• Why is business leasing cheaper than personal?

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