What happens at the end of a car lease?

Everything you need to know about the end of a car lease

The beauty of Contract Hire? When your agreement comes to an end, there's only one thing you need to do – hand the keys back.

No depreciation worries, no selling hassles, no trade-in negotiations. Just a simple handover and you're free to upgrade to your next car.

It's one of the biggest reasons people choose leasing over buying. 

But if you've never leased before, the end-of-contract process might feel a bit mysterious.

Don't worry – we're here to walk you through exactly what happens when your lease comes to an end, so you know what to expect from day one.

Do you owe anything at the end of a car lease?

The vehicle will be collected free of charge from your home or work address. And, providing that the mileage limit and standards for fair wear and tear are not exceeded, there will be nothing else to pay.

Easy peasy leasy.

Do you own the car at the end of the lease?

No. At the end of a Contract Hire agreement, you must return the car at the end of your lease.

Can I extend my car lease agreement?

It’s possible, but not always guaranteed. We’d recommend contacting your funder directly about extending your lease.

However, if there are order delays, you’re more likely to get an extension agreed.

It’s not possible to initiate a new lease deal on the car you’re already driving either. So, if you’re after a longer term, you’ll most likely need to take out a new lease agreement on a new car.

What happens to my deposit at the end of my car lease?

Your ‘deposit’ is actually an initial payment. So you don’t get it back like a ‘normal’ deposit. This is why the larger your initial payment, the lower your monthly payments will be.

It all goes towards leasing your shiny new car.

What to do before you return your lease car

A little prep goes a long way. Here's how to make sure your handover goes without a hitch:

Read the BVRLA Fair Wear and Tear guide

The British Vehicle Rental and Leasing Association (BVRLA) sets industry standards for what's acceptable when you return your car. 

The good news? Your lease car doesn't need to look showroom-fresh.

These guidelines spell out exactly what damage is considered fair for your car's age and mileage – and it's more forgiving than you might think.

Carefully check your vehicle’s exterior

About two months before collection, take a proper look at your car's exterior. Check for any bumps, scrapes or scratches that might exceed the BVRLA standards.

Top tip: Clean your car first and check it in good light on a dry day. Sometimes it helps to get a second opinion – we can all be a bit blind to our own car's imperfections.

Spotting issues early means you can get them fixed before collection, which is almost always cheaper than paying penalty charges later.

Carefully check your vehicle's interior

Give the inside the same treatment.

Check your upholstery and roof lining for stains or lingering odours, make sure the dashboard is working properly, and test that all the tech is functioning as it should.

Ensure the vehicle is thoroughly cleaned

Whether you're a DIY car wash enthusiast or prefer to leave it to the professionals, a sparkling clean car makes the inspection process much smoother.

A spotless vehicle means the assessor can see exactly what they're looking at – no hidden damage under layers of mud, and no arguments about whether that mark was dirt or a scratch.

Empty the car of all personal items

This one's obvious, but it's worth saying: make sure you've cleared out every last belonging. Check everywhere – glove boxes, door bins, seat pockets, under seats.

Once your car's gone, anything left behind is likely gone for good, no matter how valuable it might be.

Arrange your paperwork

You'll need to have ready:

• All original documents
• Complete service history
• Valid MOT certificate (if your car's over three years old)
• All keys or key fobs that came with the car

Having everything organised beforehand means no last-minute panicking on collection day.

Handing back a leased car

Good news – you won't need to chase anyone about returning your car. Your finance company will contact you before your lease ends to arrange collection.

We'll also reach out before your lease ends to discuss your next vehicle. Our leasing experts will help you transition smoothly with:

• Personalised renewal suggestions and advice
• Streamlined upgrade process

With Carparison, returning your car is just the start of your next motoring journey.

Give yourself plenty of time

With months of notice, there's no rush. But it's worth being responsive when they contact you – the more time you have to plan, the smoother the handover will be.

If collection arrangements fall through or dates get missed, late fees may apply (these will be detailed in your original lease contract).

What happens on collection day

When the collection team arrives, they'll carry out a thorough inspection with a trained assessor. They'll check:

• Your mileage against your contract limit
• Exterior and interior condition
• All accompanying equipment (spare keys, manuals, etc.)
• Any required documentation

Fair wear and tear

Don't panic about every tiny scratch – lease cars are expected to show reasonable signs of use. However, anything beyond normal wear and tear, or any missing items, may result in additional charges after collection.

The good news? These are clearly outlined in your lease agreement, so there shouldn't be any surprises.

Disputing end of car lease charges

Don't agree with the charges? You have options.

If your car comes back with damage assessments, missing item charges, or excess mileage fees that you think are unfair, you don't have to just accept them.

Your right to dispute

If your finance company is a BVRLA member (and all reputable ones are), you have the right to challenge any charges you believe are incorrect.

The key thing to remember: you need to act on collection day.

What to do on the spot

When the assessor presents their report, read it carefully before signing. If you disagree with anything, make sure you note your objections directly on the report.

Don't just sign and hope to sort it out later – once you've signed without comment, it becomes much harder to dispute charges afterwards.

The independent assessment process

If you've flagged your concerns on the collection day report, you can then arrange for an independent engineer to re-examine your car.

This engineer's assessment will be final – if they agree with you, any disputed charges will be refunded in full. If they side with the original assessment, the charges stand.

Worth knowing

While you have every right to dispute charges, it's worth considering the cost of an independent assessment against the charges you're disputing.

Sometimes the engineering fee might outweigh the potential saving.

That said, if you genuinely believe the charges are unfair – particularly for larger amounts – it's worth pursuing.

Leasing my next car

One lease ending doesn't mean the driving has to stop.

Start your search early

We'd recommend starting to think about your next car a few months before your current lease ends. This gives you breathing room to find the perfect deal without any last-minute stress.

It also accounts for delivery times – some cars can take weeks or even months to arrive, especially if they need to be built to your specifications.

Why early planning pays off

Starting your search early means you can:

• Compare deals properly without time pressure
• Consider different makes and models
• Factor in seasonal price changes
• Avoid any gap between cars if you need continuous access to a vehicle
• Take advantage of any pre-order deals or in-stock offers

The bottom line

The end of a car lease really is as straightforward as it sounds. Your finance company handles the heavy lifting, you just need to hand back a clean, well-maintained car with all its bits and pieces.

A bit of preparation goes a long way.

Start checking your car a couple of months early, get any issues sorted, and keep all your paperwork handy. Most importantly, don't forget to start thinking about your next car early so you're not left without wheels.

The beauty of leasing? Once you've handed back the keys, you're free to upgrade to something newer, better, or completely different.

No selling hassles, no depreciation worries – just the excitement of choosing your next drive.