Towards the end of a lease term, you need to consider the condition of the vehicles you’re returning. Each car or van you hand back will be inspected and you’ll be charged for any necessary repairs over and above fair wear and tear.
But there are ways to make sure these end-of-contract costs are kept to a minimum. We’ll set out what you need to do to try to avoid getting hit hard in the pocket.
What are end of lease charges?
End of lease charges are additional fees you pay to cover extensive damage to a vehicle.
You won’t usually have to pay for minor scratches and damage. Anything above and beyond this, however, is likely to result in a fee.
Check with your leasing provider to see what’s covered in their fair wear and tear policy. Things that probably won’t be covered include:
Why do end of lease charges exist?
Every vehicle depreciates in value through use and age. However, end-of-lease charges cover the loss in sale proceeds if a vehicle is returned in a condition that could significantly impact its value.
These charges can be a worry. But following just a few simple steps can help you keep costs to a minimum or even avoid them altogether.
Here are some things to bear in mind at every step of the leasing process that could save you significant sums in the long run.
Before signing the lease
During the lease
At the end of the lease
When your lease is almost up you may worry about the potential charges if your vehicles aren’t in tip-top condition. But as we’ve shown, taking simple steps before, during and at the end of your lease could see you make considerable savings when it’s time to hand vehicles back.
We always want to keep our customers’ end-of-contract costs to a minimum. Once vans and cars are returned to LeasePlan, we’ll carry out a number of checks and assess their condition under our Fair Wear and Tear policy. If there are any additional faults or damage outside that, you may be charged a fee.
However, we do our best to remove any worry by offering a repair matrix on our commercial vehicles – as well as a £150 waiver as standard. If the cost of any necessary repairs falls below that figure, you don’t pay a penny.
To find out more about how LeasePlan can help you to minimise concerns around end of contract, get in touch with our expert team today. Simply call us on 0344 493 5840 or fill out our online form.