When you enter into a lease agreement, the monthly lease costs are averaged over the total lease period. A new vehicle will depreciate at a much higher rate when it is new than when the vehicle is 3 or 4 years old. As with many contracts cancelling the contract early will incur a charge, this charge is to reflect costs that have not been recovered by the lease repayments made i.e. depreciation, or one off costs i.e. vehicle purchasing charges, vehicle sales charges, delivery charges. These charges would normally of been recovered as part of the monthly lease charge over the total lease period, however as the contract has been cancelled prior to all lease payments being made the finance company will need to charge a fee to recover this shortfall. These costs are real costs that an individual or business would of incurred if they had purchased the vehicle outright. However in addition to these costs a the finance company will also look to recover some of the income that would of been earned if the vehicle had completed its contracted term. In order for customers to be very clear from the on set of their PCH or BCH agreement early termination charges are expressed as a percentage of hire payments outstanding and will be detailed in your Hire Agreement.

Approximately 6 months prior to the end of your Hire Agreement we will contact you to discuss options with you regarding the return of your lease vehicle and options for a new lease vehicle if that is your preference. We will also look align the collection date of the existing lease to coincide with the delivery date of your new vehicle to make this process as seamless as possible and ensure that you remain mobile at all times. Vehicle collections can be arranged up to 30 days before your Hire Agreement end date, but must be made a minimum of 7 days before your end date. Any collection after your agreement end date will mean you have additions rentals to pay for the days after your contract end. Collection days are Monday to Friday ( excluding Bank Holidays) with morning or afternoon  slots generally available. Morning slots will typically be between 9am and 1.30pm with afternoon slots being between 1.30pm and 5.30pm. Our vehicle collection agent will contact you the day before your agreed collection date to confirm the collection. To arrange your collection simply complete our collection request form or contact one of our customer services executives who will be happy to help.

Each lease rental price is calculated based on the specific vehicle, the duration of the lease and the annual mileage allowance. By taking these combined factors into account we can then calculate a lease rental which takes into account the drop in value of the vehicle (depreciation) over the lease duration. The mileage of the vehicle is a key factor when estimating the value of vehicle when it is returned at the end of the period as would be the case if you owned the vehicle or were buying a second hand vehicle. If your vehicle is returned with more mileage than the agreed amount a small charge per mile will be made to reflect the lower sale value of the vehicle. This is called the excess mileage pence per mile (PPM) rate and will be clearly stated on your Hire Agreement. We can also update you on the amount at quote and order stage. The PPM excess charge is specific to each vehicle. the lease duration and the contracted annual mileage. The PPM will also vary dependant upon if the Hire Agreement includes the addition of the Maintenance and Service pack as this pack price is also dependant upon annual mileage.

An example as to how excess mileage is calculated is as follows : Excess mileage is 6p per mile and at the end of your Hire Agreement your total mileage is 1,000 miles over the agreed contract mileage, an additional excess mileage charge of £60 ( 6p X 1,000 miles) will be made by the finance company. If you have any questions regarding excess mileage charges then please get in touch with one of our customer service executives who will be happy to help.

If your vehicle has damage which exceeds the non chargeable standards set for the industry by the BVRLA under its Fair, Wear and Tear guidelines, then our advise would be to get the repairs completed by a reputable repairer prior to your vehicle being inspected and collected by your finance company. 

Please see below a summary of the key return conditions for your lease vehicle :                 

• Your vehicle has been maintained according to manufacturer standards and the service book stamped and dated as proof or if the service record is electronic that the service interval has been reset appropriately.

• Electronic features are intact and working correctly e.g. parking sensors.

• The exterior of the vehicle is in good condition with only very minor surface damage, with no rust or corrosion.

• Windows, windscreens, door mirrors and lights must be free of cracks or damage.

• The interior is clean and in good general condition.

• All sets of keys and any accessories provided with the vehicle have been returned.

• Tyres must meet minimum UK legal standards, don’t forget to check the spare!

• Wheel trims or alloy wheels must be in good condition.                                                  

No end of contract damage charges will be made by the finance company if any damage is considered to fall within the Fair Wear and Tear guidelines and you have met these industry standards.

When you lease a vehicle the finance company as part of calculating the monthly lease charge will need to estimate the future sales value when the vehicle is returned at the end of the rental period. They will make the assumption that the return condition of the vehicle is in line with the leasing industry Fair Wear and Tear standards. It is important that when the vehicle is returned at the end of the lease period that the vehicle is returned in a clean and good condition, the company financing your vehicle will complete an inspection both inside the vehicle and outside. If any excessive damage above the leasing industry Fair Wear and Tear' standard is identified then you will be required to compensate the finance company for the repair cost.

An independent body called the British Vehicle and Leasing association (BVRLA) set the industry standards for Fair, Wear and tear damage assessments, the BVRLA are a trade body for companies that are engaged in the leasing and rental of cars and commercial vehicles to both business's and consumers 

The British Vehicle Rental and Leasing Authority (BVRLA) is the UK trade body for companies engaged in the leasing, rental and fleet management of cars and commercial vehicles for both business and consumer users. The BVRLA code of conduct sets out the standards it expects its members to achieve in all aspects of the brokering of leased vehicles. BVRLA membership ensures the customer that they should expect the highest levels of professionalism and integrity when using a BVRLA member. As a Leasing Broker Member of the BVRLA we adhere in full to their code of conduct. For full details of the BVRLA Code of Conduct please see www.bvrla.co.uk/LeasingBrokerC...

If your circumstances change and you no longer require your lease vehicle for the term of the agreement, please contact us and we will request a settlement charge estimate for returning your vehicle prior to your contracted end date.

We will have contacted you prior to your vehicle being collected to confirm the collection process and also discuss options re taking a new Hire Agreement for a new vehicle to coincide with the collection of your old vehicle. Provided that your vehicle is returned within the agreed contract mileage allowance, that the return condition of your vehicle meets the industry standard set by BVRLA, the return date of your vehicle is in accordance with the end date of your hire agreement and all monthly rental payments have be made, then your vehicle will be collected and no further charges will apply. Please do not hesitate to speak with one of our customer service executives if you have any questions or need any information relating to any aspect of your Hire Agreement.

The person or business that has leased the vehicle is not allowed to purchase the vehicle at the end of Hire Agreement as this would invalidate the legal terms of the lease. However it may be possible to arrange for the vehicle to be sold directly to a family member or friend. For business leases that have been contracted in the name of the business the driver of the vehicle may be able to purchase the vehicle at the end of the Hire Agreement. If you have any questions re purchasing your vehicle please contact one of our customer services executives who will be happy to answer any questions.

For all Personal and Business contract hire agreements the Finance company owns the vehicle at all times, at no point in time does the person or business leasing the vehicle take ownership.

Yes that is a common ask so that you continue to have the use of a vehicle at all times, we will look to contact you 6 months prior to the end of your Hire Agreement so we can talk you through the end of lease process, make sure you are clear around the collection process for you vehicle and also help you make sure that the return condition of your vehicle is in line with your funders terms and conditions. It is at this point in time that we can start to discuss any new vehicle requirements