Leasing with an option to purchase does not necessarily result in the purchase of the vehicle at the end of the lease. At the end of the contract, you must return the leased vehicle if you feel that it does not really meet your needs, or that you simply no longer have any use for it.
There are a number of rules you’ll need to follow when returning your leased car, as you may be charged more or less in the event of visible damage or if you exceed the mileage limit set out in the leasing contract. Here are a few tips to help you return your leased car properly.
- Returning a leased vehicle : A key stage
Under a lease with purchase option, you dispose of the vehicle as if it were your own, except that you do not actually own it. The vehicle registration document shows code 178 “change of ownership prohibited”, as the vehicle remains the property of the leasing company. During the term of the contract, you will be required to make monthly lease payments in return for the use of the car. At the end of the leasing period, you are faced with two choices: return the leased vehicle to the garage, or purchase it outright, subject to acceptance by the supplying garage. Don’t be fooled into thinking that all you have to do at this stage is return the car and you’ll be in good standing with the leasing company and the supplying garage. On the contrary, the vehicle will undergo a thorough examination by the supplier to check that it is in a “normal” state of wear and tear. In the event of anomalies, you will be billed for the cost of repairing the damage.
- Respect the return date of the leased vehicle
The first thing you absolutely must do when returning your vehicle at the end of the lease is to set a return date. At first glance, this may seem basic, but the truth is that if you’re late, you risk incurring financial penalties imposed by the leasing company. Normally, the leasing company will notify you by post of the date by which you must go to the dealership to hand over the keys. In the event of unforeseen circumstances, always inform the leasing company, who will extend the term of your leasing contract.
- Restoration costs
The return of your leased car is not to be taken lightly, because it can result in a large bill for repair costs, which can vary in amount depending on the damage. Normally, the vehicle supplier can be flexible in the case of slightly worn carpets or micro-scratches on the bumper. Nonetheless, he may ask for certain missing or damaged elements to be refurbished. And that can be very expensive. Don’t forget to check the vehicle’s condition. This way, you won’t have to pay for damage that already existed before you leased the vehicle, if the car was second-hand.
- Respect normal wear and tear
The standard condition of a vehicle checked during a lease return includes a number of elements, starting with the bodywork, which must be free of scratches, dents, stains and rust. The mechanic will also examine the upholstery, which must be free of holes, tears and stains. As for the tires, it’s important that they show at least 50% wear, and that they’re all of the same brand. As for the engine, any parts showing signs of wear must be replaced.
- Beware of mileage penalties
If garages are very strict about the vehicle’s condition, it’s because they’ll still be trying to resell it on the second-hand market. If it’s too run-down, the price is likely to fall, resulting in a significant financial loss. In addition to the state of wear and tear of the car, the garage will also check that you have complied with the fixed mileage, which is also imposed to mitigate the depreciation of the leased vehicle. Normally, your leasing agreement specifies the number of kilometers allowed per year. If you exceed it, you will be charged penalties for the excess kilometers. That’s why it’s important to assess your needs before taking out a lease, to ensure that your mileage limit is sufficient. During the lease, if you find that it isn’t, ask for your mileage to be adjusted.
- Have major damage repaired before restitution
The best way to avoid the cost of repairing a leased car, which can represent a substantial sum, is to anticipate the return of the leased car by going to a garage that will carry out all the necessary renovations. For certain types of damage, such as dented bumpers, crumpled fenders or torn mirrors, check with your insurer to find out whether you are eligible for reimbursement. As a leased car must be fully insured, you can limit your expenses by making your insurance work for you.
- Stick to maintenance recommendations
On return, the dealer checks that you have carried out all the maintenance work recommended by the manufacturer during the leasing period. On some leasing contracts, it is possible to include services without being overcharged, as all costs are included in your monthly payments. Don’t hesitate to take advantage of this option to save money.
- Hand over all administrative documents
All the administrative documents given to you when you signed the leasing contract must be handed over to the supplier, in particular the maintenance and warranty history booklet and the vehicle registration document. Don’t leave out any of these important documents.
- The end of leasing in due form
Leasing ends when you approve the final invoice from your garage supplier. If you don’t, you’ll continue to owe your lease payments. If you take out a new lease without ensuring that the old contract has been effectively terminated, you will have to pay double rent.
- Is it possible to return the car before the end of the leasing period ?
The car must be returned at the end of the leasing contract. If you want to return the leased car early, you’ll have to pay the penalty for early termination of your leasing contract. If, for professional or family reasons, you wish to terminate your leasing contract early, it is financially more advantageous to transfer your leasing contract. Transferring your leasing contract involves finding a motorist interested in taking over your car and your contract. In the case of a lease with purchase option, you can also opt for a lease buy-back. LeaseTransfer assists you in this process of selling your leased vehicle before the end of the contract, thanks to its 100% accompanied service, and saves you the cost of penalties for early lease termination.
