What Happens at the End of a Car Lease?

Basically, there are two options available to those who have leased a car, and it is important to understand what the potential outcomes are before deciding. The options are:

  • Return the vehicle to the car leasing company. Be aware of any damage or excess mileage issues - see below.
  • Trade your leased vehicle in for a new one.

Some people may be thinking that they can buy the car they have leased - this is not possible. Your car will be picked up and inspected by a representative from the car leasing company for damage and then taken away.

Returning your vehicle to the car leasing company

The first option to return your vehicle to the car leasing company means you will simply hand back your car within your agreed term and the contract will end.

The representative from the car leasing company will check your car for damage and if it is serious then you will be handed a bill for repairs.

For this reason, it’s a good idea to have your vehicle repaired before handing it back to avoid what could be a hefty bill.

It’s also a good idea to clean your car when your contract ends because this will be stipulated in the paperwork and, again, you may be handed a cleaning bill if it is not clean enough.

Remember too to remove all your personal belongings – it’s unlikely they will be returned once the car is taken away.

 

Dealing with excess mileage charges

Another important issue for anybody leasing a car in the UK is that you will agree to drive a maximum number of miles.

If you exceed this agreed figure, then you will be handed an excess mileage charge, and this will be detailed in your contract. With some car leasing firms, this can be a very high amount.

It’s also why MegaLease encourages anyone leasing a car to consider very carefully what their annual mileage might be to avoid this excess mileage charge. It is better, and often cheaper, to sign for a higher mileage than you generally do because this then gives you leeway to avoid the excess mileage charges.

Swapping your leased vehicle for a new one

The second option to swap your leased vehicle for a new one is a popular choice.

The car leasing company will get in touch before your contract ends to ask what you want to do.

And if you want to continue leasing a car, then you simply choose a new vehicle, sign a contract and the car will be delivered when your current contract ends.

If you are leasing a car for business purposes this can be a great way to get behind the wheel of a new car without the hassle of visiting dealerships or having to sell a car.

 

Ending a car lease early

If you are asking, ‘Can you end a car lease early?’, then the answer is – usually – ‘Yes’.

Should your circumstances change since starting a new contract, it is possible to end a car lease early.

You should contact the car leasing company as soon as possible to explain that you want to return the car and they will arrange for it to be picked up.

There’s likely to be an administrative charge for this and you should also ensure that any damage is repaired, and the car is clean when it is handed.

There will be details in the contract you sign about how to end a car lease early, so it’s worth checking the paperwork first.

 

What happens at the end of a car lease?

Essentially, your end of car lease options are straightforward and you simply need to decide whether you want to lease a car or return the vehicle that you have.

Be aware that the car needs to be in good condition, which includes being clean, to avoid a repair or cleaning bill. You also need to be below the agreed mileage limit to avoid excess charges.

And for anybody who wants to know, ‘Can I end my car lease early?’, then the first step is to speak with your car leasing firm.

Ending a car lease is a straightforward process and your car leasing firm will know what to do – and they will appreciate that your circumstances may change from the initial contract signing.

And if you have any other questions about what happens at the end of a car lease, and what your options are, always contact the car leasing firm to discuss your choices.

At MegaLease, we are always available to discuss customer needs and for those who are renewing a car lease, we have a large range of great car leasing deals and vehicles available.