The complete introduction to car lease renewals

Whether your contract ends in 12 months or in just a few weeks, having a clear roadmap helps keep it a hassle-free experience.

With a car lease, you don’t get to keep the car, though you might have the option to extend your existing lease. Most people tend to hand the car back and choose another one though – getting behind the wheel of a new car every few years is one of the main perks of leasing after all.

This guide breaks down your options, key timelines, and the simple steps to ensure you transition from one car to the next without any unnecessary hassle.

Your lease end timeline at a glance

You’ll have a few decisions to make over the last year of your lease contract – from what you want to drive next, to how you’ll get behind the wheel.

A successful lease transition is built on good timing.Planning ahead helps ensure your new car arrives exactly when your current contract ends – meaning you aren’t paying for overlapping contracts or stuck without a car before delivery.

With that in mind, here’s what we’d suggest you think about over the last 12 months of your contract.

12 months left: Review & reflect

• You probably don’t need to do anything yet, but it’s a good time to familiarise yourself with the rest of the lease journey. Check your current lease agreement details, including your contract end date, monthly payment, and agreed annual mileage limit – just to make sure you’re on track and not leaving any surprises until later on.
• Reflect on how leasing has worked for you – how did you find the monthly payments? Would you need more or less mileage next time? What kind of car would you get next? Keep it all in the back of your mind as you drive, so you’re making more confident, informed decisions later on.
• You could start looking at new cars and the models coming soon – a bit of browsing now can help you picture what you might want next time.

Six months left: Start researching and check lead times

• We’d start looking at new models now, and think about whether your driving needs have changed. Are you ready for electric? Do you need more space, or something easier to park? Now’s the time to be asking.
• If you’re after a bespoke factory order, start looking now. Factory-ordered vehicles built to your exact specifications often have lead times of three to six months, so now’s a good time to explore Autotrader or give us a call with any enquiries.

Three months left: Find your next vehicle

• If you haven’t chosen your car yet, now’s the time to start looking – read reviews, see what’s in-stock and what’s popular.
• Ordering a couple of months before your contract ends gives you enough time to secure in-stock vehicles or fast-turnaround orders, meaning your new vehicle should be ready when your current lease expires. Just time it right, if the car is ready too soon you may have to pay additional fees to end your current contract early.
• If you want to, and if it’s an option in your contract, explore a formal or informal extension now. This can give you a few extra months in your current car.

Seven weeks left: Confirm delivery and final preparation

• Now you’ve chosen your next car, it’s time to run through all the admin: arrange delivery dates, finalise and get your paperwork together, and check your current vehicle for any excess wear or mileage overages. You may need to pay extra for those, so make sure you’ve factored that into your budget.

Changeover day

• Today’s the day! Hand back your old keys and receive the keys to your brand-new lease car on your driveway.

Understanding your three main end-of-lease options

Option one: Return your vehicle and lease a brand-new car

• This is the most common choice for leasing drivers. Your current vehicle will be collected, subject to standard checks for the vehicle’s condition and mileage. Once any required fees or adjustments are settled and the paperwork and keys have all been returned, your current agreement will come to an end.
• If you’ve chosen a new car, Autotrader Leasing will deliver your new vehicle straight to your door. Where possible, we’ll align delivery with your collection date to help ensure as smooth a transition as possible.

Option two: Return your vehicle without renewing

• If your personal or financial circumstances change and you no longer require a vehicle, you can simply return your leased car to the leasing company at the end of the contract term. Once the car is inspected and collected, your obligations under that contract are complete (subject to mileage and condition checks).
• Depending on your circumstances, you could explore a range of options: buying a second-hand vehicle, opting for a PCP finance contract that gives you the option of buying the car at the end of the contract, or even opting for a brand-new car.

Option three: Extending a lease

If you want to keep the vehicle beyond your contract length, you could explore a formal or informal extension, which lets you keep the car on a month-by-month basis while you work out your next steps.

This comes with potential risks:

• Your monthly payment rates won’t be fixed under your original contract terms and may increase.
• Manufacturer warranties may expire, leaving you liable for repairs, MOTs, and routine wear items like tyres.
• Leasing companies reserve the right to request the return of the vehicle at short notice, leaving you without a vehicle unless you’ve made a plan.

You may have the option of a formal or informal extension – check your contract.

• A formal extension is a new agreement with your existing funder that lets you keep the vehicle for a fixed period, usually 6 or 12 months. It can only be arranged once, and the vehicle must be returned when it ends.
• An informal extension lets you keep the vehicle beyond the contract end date without a new agreement. Availability depends on the funder, so check your contract.

Before returning your lease car

To avoid extra charges or hassle, check these areas:

• Check the car’s mileage against your contract limit. You’ll pay for extra miles, but you may be able to increase your allowance before the final months.
• When you’re returning your vehicle, make sure you review the lender's ‘Fair Wear and Tear' guidelines and check your vehicle is in good condition. The car will be checked using industry guidelines, but broadly they consider normal wear and tear to be minor stone chips and light scratches. Damage meanwhile refers to seep dents, badly scuffed wheels or cracked glass. Check the car four to six weeks before your return it, so you have time to fix any issues.
• Find all the keys, documents and supporting paperwork for the vehicle. Most of the important documents are digital now, but the vehicle’s manual is usually still a printed book found in the glovebox.
• You should also check whether your vehicle needs an MOT certificate before its return – this’ll be your responsibility.

Important note: Autotrader Leasing and your leasing company

You’ll receive communications from both Autotrader Leasing and your leasing company (funder) as your contract end date approaches. Just so you know who’s doing what:

• Your finance lender manages the financial agreement, direct debits, and physical collection of your current vehicle.
• Autotrader Leasing works as your leasing broker to source your next vehicle, configure your contract terms, and coordinate nationwide delivery. Autotrader Leasing helps coordinate your changeover so you don't have to worry about managing double payments or gap periods between vehicles.

Why renew with Autotrader Leasing?

When you choose your next lease through Autotrader, you benefit from the UK's most trusted automotive marketplace, backed by clear terms and comprehensive support:

• Free home delivery: Brand-new lease cars are delivered directly to your home driveway at no extra cost.
• Road tax included: Road tax (Vehicle Excise Duty) is included in your monthly payments for the full duration of your lease agreement.
• Full manufacturer warranty: Every new lease car comes with a full manufacturer warranty for total peace of mind.
• Customisable contracts: Easily select your contract length, annual mileage, and initial payment to suit your budget.

Ready to explore your options?

 Whether you want to browse the latest deals, explore electric vehicles, or speak with an expert about your contract end date, Autotrader Leasing is here to guide you every step of the way.

Prefer to talk? Call our leasing experts on 01442 948869 or email us directly for personalised support.