End Of Lease Charges

On this page, you’ll find some of our frequently asked questions related to charges at the end of lease contracts.

What are end of lease charges?

These are extra charges or fees that your finance provider will issue if necessary when your lease agreement ends.

End of contract charges may be issued if your lease car or van is returned in poor condition compared to when it was leased to you – the BVRLA Fair Wear & Tear guide is used to determine whether or not the vehicle is in good condition. Any damage found not covered by this guide and not repaired by yourself could lead to end of contract charges.

You can also be charged extra fees at the end of your contract if you’ve gone over your agreed mileage allowance, this is known as Excess Mileage.

And if you wish to return your vehicle sooner than your agreed date, you will be expected to pay end of contract charges – this is known as Early Termination.

Are there charges at the end of a Flexed lease contract?

When your leasing contract with Flexed is due to end, your lease car or van will be inspected for damage and the mileage checked.

An inspector will carry out a full check of the vehicle and make a note of any damage that may not be covered under the BVRLA Fair Wear and Tear guide. If any damage is found, you will be responsible for covering the cost for repairs.

Also, if you exceed your agreed mileage allowance, extra charges will have to be paid by yourself once your contract comes to an end – a small fixed fee will be charged for every mile over you have covered.

What are the most common damage issues that incur additional end-of-lease charges?

  • Dents or chips to the bodywork
  • Scratches and scuffs to the paintwork
  • Holes, tears or burns to the seating
  • Interior damage
  • Wheel and trim damage
  • Chips to the windscreen
  • Documents or extra keys missing
  • Damage caused to a van from the removal of decals
  • Damage caused to a van loading area not classed as acceptable
  • Damage caused to a van from the removal of roof fittings

A full description of what is and isn’t classed as acceptable damage according to the BVRLA Fair Wear & Tear guide will be provided at the start of your leasing journey with Flexed.

You will be liable to pay for any excess damage that isn’t covered under the Fair Wear and Tear guide – this will be due for payment at the end of your lease term.

We recommend you carry out a full inspection of your lease car or van well in advance of the end of your lease term, so that any damage not covered under the Fair Wear & Tear guide can be rectified by yourself.

Can I prevent charges for exceeding the mileage allowance on my lease?

Further charges that could happen at the end of your contract when your lease car or van is due to be returned are excess mileage charges as a result of exceeding your agreed mileage allowance that you signed up for.

It is therefore vitally important that you keep within your agreed mileage to avoid extra charges at the end of your lease term, as every mile you cover over the allowance will have to be paid for.

To avoid having to pay extra mileage-based charges at the end of your lease term, we advise all customers stay within their agreed mileage.

If you know this might be an issue, you could ask if it’s possible to change your mileage allowance to better suit your needs (please note, this will have an effect on your monthly lease payments).

Why does going over my mileage allowance incur charges?

As part of your lease agreement, you’ll be asked what annual mileage allowance would suit your needs and based on your figure this will be calculated into your monthly payments – so the higher your mileage allowance, the greater the cost will be added to your monthly payment.

If you exceed your agreed mileage allowance, you will have to pay a fee at the end of your contract based on how many miles over you have driven.

Basically, the more miles your lease vehicle shows on the clock, the more of an effect depreciation has, and this is all accounted for when you take out a lease contract-so exceeding your agreed mileage allowance means you will have to pay extra at the end of your contract.

What is the cost of excess mileage on a car lease?

The excess mileage rate varies depending on your chosen finance provider, but as an example, if your agreement states that any excess miles will be charged at 3p per mile and you cover 2,000 miles more than you should – your excess mileage charge would be £60 payable at the end of your lease term.

What is ‘fair wear and tear’?

Once your contract comes to an end and the vehicle is ready to be returned, your lease car or van must be in good condition both inside and out upon inspection.

‘Normal’ fair wear and tear is acceptable, however any damage found that is not classed as being covered under the BVRLA Fair Wear & Tear guide will mean extra charges to pay at the end of your contract.

Your own finance provider will expect you to follow their fair wear and tear guidelines which tend to be based around the BVRLA’s general guide.

It’s advisable to carry out your own thorough inspection of your lease vehicle before it’s due to be returned:

  • Inspect all the bodywork, paintwork, bumpers and trims and check the windows, lamps and door mirrors for cracks.
  • Both sets of keys and handbook/documentation that came with your lease vehicle must be present and the equipment and controls be in good working condition.
  • The wheels and tyres should be checked for damage and the overall mechanical condition of the vehicle should be spot on.
  • The interior should be inspected for any damage, whilst the seats checked carefully to ensure there are no stains, rips or burn holes.

Any damage not covered by the BVRLA fair wear and tear guide should be repaired by yourself using an approved garage before the vehicle is returned so as to avoid end of contract charges.

Looking after both the interior and exterior of your lease vehicle whilst in your possession is the best way of avoiding penalty charges at the end of your contract.

How can I avoid/prevent charges at the end of my car lease?

Looking after your lease car or van from the start of your lease contract is the best way of avoiding having to deal with any issues that could arise.

For example, on a monthly basis, you could inspect your lease car or van for any noticeable damage such as dents or scratches. Inspect the wheels & trims and check the glass and lighting for any signs of damage.

Try and keep the interior clean and tidy, possibly by regular valeting, and look for any stains or tears to the seating.

Clean and polish the exterior on a regular basis so that the car or van you lease stays looking good and keep all documentation/handbooks safely in the glovebox.

Keep the second key in a safe place and remember to return it at the end of your lease term. Don’t forget to remove any other personal keys from your keyring before handing them over and remove all personal items from the vehicle.

With Flexed, vehicle maintenance is included as part of your lease contract, so if any damage is noticed by yourself, it is advisable to inform us so that any issues can be dealt with during a maintenance check.

Our vehicle maintenance includes servicing, tyres and general fair wear & tear cover.

If you’d like more information or have any questions regarding end of lease charges, why not get in touch.

Simply click here to find out more about our car leasing services and fantastic offers for both Business and Personal customers, or give us a call on 0800 311 8290 and speak to a member of our friendly team.

 

You can also reach us by sending a quick email to talk@flexed.co.uk, or you can chat with a member of our team NOW using our online ‘We Are Here!’ service – we’ll gladly answer any leasing questions you may have.

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