Your End-Of-Contract Guide

Your car lease is nearing the finish line, and it’s important to know exactly what happens next. At RightLease, we believe ending your lease should be just as straightforward as starting one. This guide explains the entire process step-by-step, from your first reminder notice to vehicle collection so you can prepare confidently, avoid unnecessary fees, and transition smoothly into your next car.

What Happens at the End of a Car Lease

Every car lease has a defined term, usually between two and four years. As you approach the end of that period, you’ll receive a notification from RightLease confirming when your agreement is due to finish. Around three months before that date, we’ll contact you to discuss your options and next steps.

When your lease expires, you’ll need to return the vehicle, settle any remaining balances, and ensure it meets the agreed condition and mileage standards. Once everything is completed and approved, your contract is officially closed and you’re free to begin a new lease if you choose.

Our goal is to make this process transparent and free from hidden costs. We’ll guide you through it, but it’s useful to understand what’s involved ahead of time.

Your Options at Contract End

Return the Vehicle
The simplest and most common choice is to return the car at the end of your term. RightLease arranges collection, an inspection is carried out, and provided the vehicle meets fair wear and tear standards and the mileage limit, your contract closes with no further payment due.

Upgrade to a New Lease
Many of our customers simply choose to start a new lease with RightLease. You can select a fresh model, benefit from updated technology and safety features, and continue enjoying the convenience of fixed monthly payments. Our team will help you transition seamlessly so there’s no gap between handover and delivery.

Purchase (If Applicable)
Some lease agreements include a purchase option, although this is uncommon in standard business and personal contract hire. If yours does, you can buy the vehicle at its final value, also known as the residual or balloon payment. Speak to your account manager to confirm if this applies.

Preparing for the End of Your Contract

Preparation makes the end of your lease much easier. We recommend starting this process three to six months before your contract expiry date.

Review Your Agreement
Re-read your lease contract to refresh your memory on mileage limits, wear and tear standards, and what’s considered acceptable vehicle condition. Knowing these details early helps you make informed decisions about repairs or extensions.

Check Servicing and MOT
Ensure the car’s servicing schedule is up to date. If your vehicle is due an MOT before return, you’ll need to complete it unless your agreement specifically says otherwise. A missing MOT certificate can result in extra charges.

Book a Pre-Inspection
A pre-inspection is optional but strongly advised. It provides an early report on any damage that could incur costs. This gives you the opportunity to repair small issues privately before they’re recorded as end-of-lease damage by the collection agent.

Tidy Up and Repair Minor Issues
Take time to give the car a full clean inside and out. Remove any stickers, personal items, or residues. Repair minor scuffs or scratches, especially on bumpers and alloy wheels. Most drivers find that spending a small amount on minor repairs prevents much larger re-charge costs later.

Organise All Documents
Make sure you have both keys, the service book, manuals, locking wheel nut, and any accessories that came with the car. Missing items are one of the most common reasons for additional end-of-contract charges.

The Vehicle Inspection Process

When your lease ends, a formal inspection will be carried out either at your address or a collection centre. This inspection assesses vehicle condition, mileage, service history, and the presence of all accessories. The inspection is usually completed by a third-party agent on behalf of the finance company.

They’ll prepare a report with photographs and notes detailing any areas of concern. You’ll have a chance to review and sign this document to confirm that the details recorded are accurate. If any damage is beyond fair wear and tear, it will be itemised, costed, and billed separately once the vehicle is returned.

Fair Wear & Tear Standards

Every leased vehicle is assessed at the end of contract based on recognised Fair Wear & Tear standards. These standards take into account the vehicle’s age, mileage, and daily use recognising normal, reasonable signs of driving over time. However, certain types of damage are never acceptable and will result in repair charges.

Fair wear and tear refers to the natural, gradual deterioration of a car through normal use. It does not cover neglect, misuse, accidental damage, or poor repairs. The inspection process is designed to be fair, transparent, and consistent across all returned vehicles.

Acceptable Examples

Minor imperfections such as small stone chips, light surface scratches or scuffs, and a few tiny dents that haven’t broken the paint are considered normal. These are examples of acceptable wear and tear:

Unacceptable Examples

Damage caused by accidents, neglect or poor maintenance falls outside the fair wear and tear standard and will lead to additional charges. Examples include:

Your Fair Wear & Tear Checklist

Before your inspection, check the following:

• The car is clean, dry, and inspected in good natural daylight.
• All keys, service records, manuals, and accessories are present.
• All personal items are removed from the vehicle.
• Tyres are inflated, legal, and free from visible damage.
• No warning lights are showing on the dashboard.
• Windscreens, mirrors, and lights are free from cracks or chips.
• Seats, trims, and carpets are clean and undamaged.

If you’re unsure whether any marks or issues are likely to incur charges, contact your RightLease account manager or refer to our detailed BVRLA Fair Wear & Tear Guide for full examples and image comparisons. We’ll also include helpful reference photos on this page to show what’s considered acceptable versus excessive wear.

By understanding the Fair Wear & Tear standards and taking time to prepare your vehicle, you can make the return process faster, easier, and free from unexpected costs.

Mileage and Excess Mileage Charges

Every RightLease contract includes an agreed annual mileage limit, which helps determine your monthly payment. That allowance is multiplied by the length of your agreement to set your total mileage cap for the full term. At the end of your lease, the vehicle’s odometer reading will be checked against this figure to see if you’ve gone over. If you have, an excess mileage charge will apply at the pence-per-mile rate shown in your contract.

These rates are clearly stated when you sign your agreement and are designed to reflect the natural impact of mileage on a vehicle’s value. For example, if your allowance is 10,000 miles per year over a three-year term, your total limit is 30,000 miles. Returning the car with 33,000 miles would mean 3,000 excess miles multiplied by your agreed rate per mile.

To avoid surprises, keep an eye on your mileage throughout your lease. Many vehicles have trip computers that track total and average miles. If you think you might exceed your limit, contact RightLease early some lenders allow you to amend your contract mileage mid-term, usually at a much lower rate than paying per mile at the end. It’s a simple step that can save you money and make your return process smoother.

It’s also worth remembering that exceeding your allowance doesn’t affect your credit or ability to lease again, but staying within your agreed mileage is always the most cost-effective option.

Returning Your Vehicle

When your collection date arrives, your car should be clean, roadworthy, and ready for inspection. The collection agent will check the mileage, assess the overall condition, and record any marks or issues that fall outside the fair wear and tear standard. You’ll then review and sign a condition report confirming that the details recorded match what you see on the vehicle.

Before collection, make sure you’ve gathered all necessary items, both sets of keys, the V5 logbook if required, the vehicle’s service book, MOT certificate (if applicable), and any original accessories such as the locking wheel nut, SD card, or charging cable for electric vehicles. Missing items can lead to additional charges, so it’s worth checking carefully in advance.

If your vehicle is being collected from home or work, please ensure it’s parked in an accessible area with enough space for a full walk-around inspection. The agent won’t collect vehicles that are unsafe to drive or have major damage that prevents transport. Once the car has been taken, it will undergo a final verification by the finance provider before your end-of-contract statement is issued.

If you’re leasing a new vehicle with RightLease, we’ll coordinate the timings so your next delivery aligns perfectly with your current return keeping you on the road without disruption.

Common End-of-Contract Charges and How to Avoid Them

Most end-of-contract charges come down to a few avoidable issues: excessive mileage, damage outside fair wear and tear, missed servicing, or missing items like keys and documents. The easiest way to avoid them is to start preparing early. Booking a pre-inspection a few weeks before your return allows you to identify anything that might lead to costs and fix it on your own terms.

If you notice light damage such as small dents or scuffs, it’s often more cost-effective to repair them yourself using a trusted local bodyshop. Similarly, ensuring your service and MOT are fully up to date helps prevent end-of-contract recharges for maintenance compliance. A professional valet inside and out also goes a long way to ensuring your inspection runs smoothly.

Remember, fair wear and tear covers normal usage marks, but neglect or poor upkeep doesn’t. Simple steps like checking tyre tread, removing personal items, and repairing small issues early can make all the difference. Treat the car as if it were your own and you’ll have nothing to worry about at return.

After the Return

Once your vehicle has been collected and inspected, your finance provider will finalise the report and issue your end-of-contract statement. This document confirms whether your vehicle has passed within acceptable standards or lists any charges for excess mileage, missing items, or damage beyond fair wear and tear.

If there are charges, each one will be supported by photographic evidence and an itemised cost breakdown, ensuring complete transparency. You’ll have the opportunity to review these and raise a query if you believe something is incorrect, all assessments are carried out in line with the BVRLA’s Fair Wear & Tear guidelines.

Once any outstanding charges are settled, your agreement is formally closed. You’ll receive written confirmation that your contract has ended with no further obligations. From there, you’re free to start your next lease, and our team can help arrange your next vehicle with the same smooth, straightforward service you’ve come to expect from RightLease.

Our goal is to make the end of your lease as simple and transparent as possible, no hidden costs, no confusion, just a professional handover from start to finish.