May 13, 2022
If you have a company car that is a lease vehicle or have leased one with your car allowance and want to know more about what happens at the end of the contract, then this article is for you!
Decide What You Are Doing with the Vehicle
The first thing you’ll want to decide about eight to six weeks before the end of your lease agreement is what you want to do, if you would like to return the vehicle at the end of the contract as originally planned, extend the lease agreement to keep that vehicle for longer or sometimes even purchasing it can be an option if you particularly like a model. We recommend you make this decision around two months before the end of the lease as some funders will not allow any contract amendments such as an extension in the last month of the agreement.
Check Your Mileage
If you’ve decided that you would like to return the vehicle at the original contract end, or the end of an extension period, then the next step that you’ll want to take is to check your vehicle mileage. This should again be done around two months prior to the end of your agreement to make sure that if you are over or expect to go over the total mileage allowance you can make an amendment if needed.
Please note that changing your contracted mileage allowance will likely result in a change to the remaining payments so it may be worth comparing the quote for increasing the mileage to the overmiles charge you are likely to pay. You can find out more about this here.
When you reach the last month of your lease agreement we would then recommend arranging collection of the vehicle to ensure you are able to get a convenient date for you before the contract end date.
Most funders work on a seven to 14 day lead time for arranging collection but at particularly busy periods this can extend which is why we advise arranging it after the final payment is taken.
If your vehicle is a company car then your fleet management team should be aware of the contract end date and liaise with you on collection.
Please be aware that most funders will not contact you to remind you that the lease is ending it will be your (or your business’ if a company car) responsibility to contact them and arrange for the vehicle to be collected.
Five Tips for the Best Vehicle Handover
1. Do a detailed inspection of the car a couple of weeks prior to collection and use the fair wear and tear guidelines to make sure that it is in line with the expected return conditions.
2. If you do find any damage or excessive wear then arrange for this to be repaired so that you do not get charged for it once the vehicle is collected.
3. Make sure you have all the keys the car came with and replace any missing or faulty ones to avoid being charged for these.
4. Clean your car before collection to make sure it’s in the best possible condition and you are not charged for any marks that you may have been able to buff out o
5. Be there for the inspection and collection if you are able to so that you know what is being added to the inspection report and can make comments for the agent to add as well if needed.
As part of the collection process the vehicle will have a full inspection by one of the funder’s agents. This will usually happen on the day of collection though it’s important to be aware that at particularly busy times some funders may arrange for inspection to take place a day or two before collection.
The inspection will take place at the collection location before the agent takes the vehicle away so that the mileage and condition of the car are assessed where you can ask any questions if needed and you will not be liable for any mileage added or damage incurred when the vehicle is travelling.
When the inspection is completed the vehicle will then be taken away by the collection agent and you will not need to do anything further until the funder issues the collection report.
When the vehicle is collected we advise being there in person so that you are the one to complete the final handover and can query any notes made on the vehicle condition as well as signing to confirm the collection report is correct.
Collection Report and Any Charges Issues
Once the vehicle has been collected the funder will review the collection and inspection report and based on this, they may issue additional charges to you if there is excessive wear, damage to the vehicle or you have exceeded the contracted mileage.
The funder will usually provide you with a copy of the report as well as a breakdown of any charges. If you are concerned about these charges you will then be able to query them.
For more information on what happens at the end of the lease then check out this guide.