The end of a car lease can be a stressful time if you are not prepared. Handback inspections, excess mileage charges, and damage claims can turn what should be a simple process into an expensive one. This guide explains your options, what the inspection involves, and how to minimise your costs.

Your Options at End of Lease

OptionAvailable OnDetails
Return the carPCH and PCPHand the car back, walk away (subject to condition and mileage charges)
Buy the car (balloon payment)PCP onlyPay the final balloon payment to own the car outright
Part-exchange / roll equityPCP onlyIf the car is worth more than the balloon, use the equity as a deposit on your next deal
Extend the leasePCH and PCP (by arrangement)Continue paying monthly for an additional period (typically 3–6 months)

The Handback Inspection

When you return a leased car, the finance company arranges an independent inspection. This typically happens at your home or workplace a few weeks before the end of the contract. The inspector assesses the car against BVRLA fair wear and tear guidelines.

The inspection covers:

  • Bodywork — Dents, scratches, stone chips, bumper scuffs
  • Glass — Windscreen chips, cracks, and damage
  • Wheels — Alloy wheel kerb damage, tyre condition and tread depth
  • Interior — Stains, burns, tears, excessive wear, missing items
  • Mechanical — Warning lights, unusual noises, fluid leaks
  • Service history — All stamps present as per the manufacturer's schedule
  • Keys and documents — Both keys, owner's manual, service book

BVRLA Fair Wear and Tear: What Is Acceptable

The BVRLA guidelines are the industry standard for assessing returned lease vehicles. They allow for reasonable use but not neglect.

AreaAcceptableNot Acceptable
ScratchesLight surface scratches not through base coat, under 25mmDeep scratches through paint, over 25mm
DentsNone — even small dents are chargeableAny dent regardless of size
Stone chipsLight chipping consistent with age and mileageLarge untreated chips showing bare metal
Alloy wheelsLight scuffs on edge of rimKerb damage to face of alloy, bent rims
TyresAt least 1.6mm tread, matching specBelow legal limit, wrong size, mismatched brands across axle
InteriorLight wear consistent with ageBurns, cuts, permanent stains, pet damage
WindscreenSmall chips under 10mm outside driver's line of sightAny crack, chips in driver's view, chips over 10mm
Pro Tip: Download the BVRLA fair wear and tear guide from bvrla.co.uk and inspect your car against it 2–3 months before handback. This gives you time to get any chargeable damage repaired at your own cost, which is almost always cheaper than paying the leasing company's repair charges.

Excess Mileage Charges

If you have exceeded your contracted mileage allowance, you will be charged for every excess mile. The rate is specified in your contract and typically ranges from 5p to 15p per mile depending on the car.

Excess MilesCharge at 6p/mileCharge at 10p/mileCharge at 15p/mile
1,000 miles£60£100£150
3,000 miles£180£300£450
5,000 miles£300£500£750
10,000 miles£600£1,000£1,500

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How to Minimise End-of-Lease Charges

  1. Inspect your car 2–3 months early. Use the BVRLA guide to identify any chargeable damage
  2. Get damage repaired independently. A mobile smart repair service can fix scratches, dents, and alloy scuffs for a fraction of the leasing company's charges
  3. Replace worn tyres. Ensure all tyres have at least 1.6mm tread and are the correct size and specification
  4. Deep clean the interior. Remove all personal items, vacuum thoroughly, and clean any stains
  5. Gather all keys and documents. Missing keys can cost £200–£500 to replace
  6. Complete any outstanding services. Missing service stamps can result in charges

Disputing Charges

If you believe the charges are unfair, you can dispute them. First, request the full inspection report with photographs. Compare each charge against the BVRLA guidelines. If items have been charged that fall within fair wear and tear, write to the leasing company quoting the specific BVRLA standard.

If you cannot resolve it directly, you can escalate to the BVRLA's own dispute resolution service (if the leasing company is a BVRLA member) or to the Financial Ombudsman Service.

Final Thoughts

Preparation is everything when it comes to returning a leased car. By inspecting your car early, getting damage repaired independently, and understanding your rights under the BVRLA guidelines, you can significantly reduce or eliminate end-of-lease charges.

Frequently Asked Questions

Start preparing 2–3 months before the end of your contract. This gives you time to inspect the car, arrange any repairs, replace worn tyres, and gather all keys and documents without rushing.
Yes. Request the full inspection report with photographs and compare each charge against the BVRLA fair wear and tear guidelines. If items fall within fair wear and tear, write to the leasing company quoting the specific BVRLA standard. You can escalate to the BVRLA or Financial Ombudsman if needed.
Almost always cheaper to repair it yourself. A mobile smart repair for a scratch or alloy wheel scuff might cost £50–£100, whereas the leasing company might charge £150–£300 for the same repair. Get quotes from local SMART repair specialists.
You will be charged for every excess mile at the rate specified in your contract (typically 5–15p per mile). There is usually no way to avoid this charge. If you are on a PCP deal and the car has positive equity, buying the car and selling it privately may work out cheaper than paying the excess mileage charge.
Most leasing companies allow informal extensions of 3–6 months. Contact them at least a month before your contract ends. The monthly payment during an extension is usually the same as your regular payment. This can be useful if you are waiting for a new car to arrive.

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