End Of Contract Options

---

What are your End of Contract Options?

End of Contract Options are the choices available to you when your vehicle contract hire agreement comes to an end.

The type of lease contract you have determines which end of lease options are offered to you – whether you have one of the Business Car Leasing Contracts or one of the Personal Car Leasing Contracts.

Check out our section on Fair Wear And Tear, which will help you avoid De-Hire Charges at the end of the contract.

---

Contract Hire

Your End of Contract Options with Business Contract Hire and Personal Contract Hire (PCH) are:-

• Simply hand the car back with no further payment or commitment
• Extend your contract for a period of 6 or 12 months
• Request a purchase price if you are interested in buying the vehicle. This is at the discretion of the leasing company. If they offer you a purchase price, it is usually not negotiable as they already have the vehicle underwritten.

Contract Purchase

Your End of Contract Options with Business Contract Purchase and Personal Contract Purchase (PCP) are:-

• Simply hand the car back with no further payment or commitment
• Extend your contract for a period of 6 or 12 months
• Pay the ‘balloon’ payment and own the car – the balloon payment is the figure given to you at the start of your agreement which must be paid at termination if you want to own the vehicle.

---

End of Lease Options – more information

Extending Lease Contracts

One of your End of Contract Options is to extend your lease.

Extending contracts can be very convenient for a number of reasons:-

• You may not be in a position to sign up for a new 2 or 3 year lease
• You may not be confident in future business or the economy
• You may not be able to raise the initial payment for a new lease
• You may be undecided on what vehicle to have next
•  You may have ordered a new car which will take a few months to arrive

Option to Purchase

As I have said, an option to buy your vehicle is part of any Contract Purchase agreement.

Buying your lease car could be one of the best end of contract options for you because:-

• You know the car extremely well as you’ve had it from new
• Even if you don’t keep it yourself, you can sell it or pass it on to a family member
• The final balloon payment may be less than what you could sell it for
• It could last for many more years, if it is in very good condition and low mileage

Early Termination

All Contract Hire and Contract Purchase agreements are fixed term and legally binding, so early termination could be costly.

This means that if you wish to terminate one of these types of leasing contracts early, you are likely to have to pay a settlement figure in order for the leasing company to release you from the remaining contract period. The figure varies according to how much time remains of the lease, and also between leasing companies, who each have their own policies regarding early termination.

<<- back to Business Car Leasing

<<- back to Personal Car Leasing

---