End of Lease Options

What are your options at the end of a car lease?

At the end of a car lease, you typically have a few options. You can return the vehicle to the leasing company and walk away, extend the lease if your contract allows it, or, in some cases, purchase the car if there’s a lease-end purchase option. Depending on the leasing agreement, you may also have the opportunity to lease a new car with a fresh contract.

Can you buy the car at the end of the lease?

At the end of a contract hire agreement, there is sometimes an option to purchase the car at the end, but this is something that you would need to approach the finance company around six months before the contract is due to finish as it is usually calculated with the residual value of the car and also depends on what mileage is on the vehicle.

What are lease return conditions?

Lease return conditions refer to the standards the car must meet when you return it. The vehicle should be in good condition, with only reasonable wear and tear, as defined in your leasing contract. Excessive damage, such as large dents, scratches, or interior stains, may incur additional charges. The car should also be within the agreed mileage limit; exceeding this can lead to extra fees.

What fees are associated with lease termination?

There are a few potential fees associated with lease termination. If you exceed the agreed mileage limit or return the car with damage beyond normal wear and tear, you may face additional charges. If you decide to end the lease early, early termination fees can apply, which usually involve paying a percentage of the remaining lease payments. It's important to review your contract for details on any applicable fees.

How do you prepare your car for lease return?

To prepare your car for lease return, start by giving it a thorough clean, inside and out. Check for any damage that might go beyond normal wear and tear, and consider having minor repairs done before returning the vehicle to avoid extra charges. Make sure the car is within the agreed mileage limit and that all the original equipment, such as keys and manuals, is intact. Finally, arrange a pre-return inspection to ensure the vehicle meets the return conditions specified in your lease agreement.