Worried about the condition of your vehicle before the end of it's contract? Here's our guide on handing your vehicle back.
Returning a leased vehicle is usually straightforward, but it can be difficult to distinguish between damage and fair wear and tear. We want to help you return your vehicle to the leasing provider/funder. We've created this comprehensive guide to help you understand all the nuances and avoid any unexpected charges once your vehicle has been collected. Your leasing provider will typically contact you within the last three months before the end of the contract date, giving you details on how to arrange collection and any other necessary steps, which vary from funder to funder.
An inspector will contact the customer on the day before or day of arrival, providing them with an estimated time of arrival - allowing you to know approximately when they will conduct the inspection. The inspection shouldn't take any longer than 1 hour.
They'll introduce themselves, and take your vehicle's keys, any documentation and loose items from you before taking a thorough look at your vehicle's exterior and interior and mark down any damage they spot. They may use tools such as a magnetic ruler or a striped board which shows any imperfections in bodywork that may be hidden to the human eye. This is to ensure all of their findings are accurate and fair, before documenting this in their report.
Most inspectors will use an iPad or tablet to conduct the inspection, allowing them to take pictures of any damage to the vehicle to include in their report, and to help the funder/lease provider decide on whether to charge their customer for the damage.
The inspector will also record the mileage of the vehicle, showing on the odometer at the time of the inspection. As the inspector doesn't have access to sensitive contractual information, any excess mileage charges will not be estimated at point of inspection. These will be charged via invoice or direct debit once your funder/leasing provider completes the returns process of your vehicle.
They'll then inform you of their findings and then ask you to sign the report, which will be sent to you via email. It's important to note that this isn't the final bill from your funding provider. Most funders will process the return of your vehicle through their systems, and raise an invoice for damage charges if necessary.
If you receive an invoice for damage outside of fair wear and tear, this will usually come alongside any information on querying or disputing the damage charges with the funder/lease provider.
Excess mileage (XSM) is a charge for when you drive over the contracted mileage allowance as stated in your contract at the time of signing it. Excess mileage is charged per mile, as stated in your contract - meaning it's important to stay within this contracted mileage allowance, to avoid charges upon return. If you expect to go over your mileage allowance during the agreement, it's a good idea to contact your funder/lease provider early to see whether you can reschedule your agreement so you avoid the excess mileage charges upon your vehicle's return.
Excess mileage affects the vehicle value, so funders allow for this in your monthly payments when you sign your contract. The more miles you drive, the more your vehicle depreciates - so you'd usually have a higher monthly payment if you drive more miles, helping your lease funder estimate your vehicle's worth at the end of it's contract.
Let's get your vehicle ready for collection. We recommend checking the following a few weeks prior to the end of your contract, in order to avoid any stress closer to the time of collection.
Are your tyres inflated correctly, with over 1.6mm of tread and no cuts or gouges to the tire wall?
Does your vehicle start and run, as expected with no warning lights on the dashboard?
Is your vehicle's exterior clean, and the interior valeted?
Lease providers/funders usually ask for a quarter tank of fuel, or a full charge for EVs.
Have you reset your vehicle's infotainment system to factory settings?
Have you replaced all required accessories in your vehicle?
The above list isn't exhaustive, so it's best to check with your funder or lease provider to see what they will also check on the day of collection.
In an ideal world, funders/leasing providers will typically want your vehicle returned as close as you can get it to when you received it. However, they understand that over time, your vehicle's condition will deteriorate. This is why they usually have a return standard, found on their website or sent in the post, which you can refer to - in order to avoid any fines for damages outside of fair wear and tear.
However, most lease providers base their return guidelines off of the BVRLA's Fair Wear and Tear guidelines. This is an industry standard guidelines which all of the main lease funders/providers use in order to manage customer expectations upon the return of their vehicle.
The BVRLA (The British Vehicle Rental and Leasing Association) is an industry trade body for companies who engage in leasing, vehicle hire & rental and fleet management. Although Citygate Leasing are a leasing broker, and not a funder or leasing contract provider, we are a member of the BVRLA, who helps us uphold industry standards by ensuring transparency, compliance, and fair treatment for our customers. Through our BVRLA membership, we adhere to their Code of Conduct, providing reassurance that our processes align with best practices in vehicle leasing and dispute resolution.
The BVRLA Fair Wear and Tear Guidelines refer to the acceptable deterioration of a vehicle's condition over the course of a hire agreement, resulting in it's normal usage over time. In terms of fair wear and tear, the BVRLA set guidelines on how funders/leasing providers determine damage outside of 'fair wear and tear', helping enforce industry standards and managing customer expectations when returning their vehicle.
An inspector may abort your inspection if your vehicle is in an unroadworthy condition, in any way which may impact the health and safety of the inspector or the public whilst it is being transported to the lease company's de-fleet site. This could be for the following reasons:
It's also worth noting that the customer should be on site upon the inspector arriving, and should be able to sign the inspection form at the end of the inspection.
For these reasons, you may receive an 'abort charge' from your lease provider/funder, so it's important that the above is addressed prior to the inspector arriving.
If you placed a custom number plate on your vehicle when you started your lease agreement, the BVRLA recommends that customers contact their funder/leasing provider 10/12 weeks prior to the end of their contract to keep their private/cherished registrations.
This usually is a simple process which many funders/lease providers will have a dedicated team who can assist, however it's important to plan ahead to avoid any charges.
Before the end of your vehicle's contract, you should check on your funder's/lease provider's website to see whether they have specific guidelines for handing back your vehicle. Please see the below links: