Leasing Renewals

What are my renewal options?

1. New Replacement Vehicle

Most people will order a new replacement vehicle to coincide with the contract end date of their current vehicle. Under normal circumstances, most manufacturers would be able to give a ball park arrival date of a new factory ordered vehicle.

We can then arrange for delivery of the new vehicle and collection of the old one on mutually convenient dates to cause as little disruption as possible. Please be aware that some vehicles will take far longer to arrive than others, so please speak to your Account Manager to discuss further.

2. Formal Extension

You may be able to formally extend the current lease for a period of either 6 or 12 months. This can be particularly useful if a short term contract was to suit your needs, or if indeed your new vehicle was delayed by 6 months then this can be a cost effective option.

Different leasing companies charge different amounts for monthly extension rentals, so please speak to your Account Manager to request a quote. Rentals can go up or down, but there is not normally an enhanced deposit or initial rental to pay. Be aware that your vehicle may be out of manufacturer's warranty through, and there could be early termination fees to hand the vehicle back early.

3. Informal Extension

Some leasing companies will let you informally extend your contract on a rolling month by month basis, based on an agreed monthly rental. Most rentals will be based on a “true monthly cost”, so may increase dependant of how many initial rentals you paid up front of the primary lease term.

This is a great option if your new vehicle is due through in a matter of weeks and you just need to remain mobile for a short period of time. Please remember though, during informal extensions the leasing company can exercise their right to request the return of their vehicle at short notice!

4. Purchasing the Vehicle

Some leasing companies will let you request a purchase price for the vehicle at the end of the primary contract term based on its current market value, although terms and conditions will apply. This is not a right within the terms of the lease, but rather an option that some leasing companies may extend to you. If you would like to explore this option then please speak to your Account Manager.

What should I consider before my lease ends?

Beyond reviewing your options outlined above, there are several other things more relevant to the vehicle and contract themselves to consider:

BVRLA Fair Wear and Tear Guidelines

The BVRLA has published a fair wear and tear guidelines that outlines the acceptable level of wear and tear on a leased vehicle at the end of the lease term.

The BVRLA fair wear and tear guidelines defines fair wear and tear as "the reasonable and normal deterioration which can be expected to occur over the course of a lease, taking into account the age and mileage of the vehicle, and the use to which it has been put." The guidelines include detailed descriptions and photographs of what is considered fair wear and tear for different parts of the vehicle, including the exterior, interior, wheels and tyres, and under the hood.
 

Excess Mileage Charge

Excess mileage charges are fees that are incurred when you exceed the agreed-upon mileage limit in your original lease contract. These charges are designed to compensate for the additional depreciation and wear and tear on the vehicle caused by these excess miles.

The excess mileage charge is typically calculated by multiplying the excess mileage driven by a per-mile charge, which is specified in the lease contract. For example, if the agreed upon contract mileage limit was 30,000 miles, and the lease contract holder drives 32,000 miles during the lease term, they will incur excess mileage charges for the 2,000 miles that they drove over the limit. The per-mile charge will vary depending on the terms of the lease contract.

Maintenance, Servicing and MOT

You are expected to return the car in the same condition that it was in when you received it, minus normal wear and tear. Any damages beyond normal wear and tear may result in additional charges. The majority of vehicles returned to the leasing company tend to be in good condition, however, some common things to look out for when inspecting your vehicle before it's lease ends are: excess mileage, alloy wheels, missing service history, missing spare key, missing locking wheel nut