Ending a car lease early in the UK
If you’re leasing a car and you need to end your agreement early, there are a few things you’ll need to know. Read on to find out more about how to end your car lease early and what your options might be.
Words by: Andrew Woodhouse
Last updated on 29 April 2025 | 0 min read
Sometimes circumstances change and you may need to end your car lease earlier than planned. This guide explains what early termination means, the possible costs and what to expect when returning your vehicle.
What is an early termination of a car lease?
When you lease a car, you’ll choose a set duration for how long you drive the car (usually 2-5 years, although the average lease term is 3 years). If you return the car before the agreed end date, it’s known as an early termination.
Why would I need to terminate a lease contract?
What are the penalties and fees?
Ending a car lease early means you usually need to pay an early termination charge. The amount varies between leasing companies, so check your lease agreement for the exact terms. As a rough guide, the charge may be around 50% of your remaining monthly payments.
Some leasing companies also limit when you can end the agreement. For example, they may not allow early termination during the first six months. Your lease agreement will explain which rules apply to you.
Will ending my lease impact my credit score?
What if I need to end my lease early because I can’t afford it?
What is the process for ending my car lease?
Start by contacting your lease provider and asking for an early termination quote. The quote will show how much you need to pay. You can then review the cost and decide whether you want to go ahead.
If you do decide to end your contract, you can find out what happens at the end of a car lease in our helpful guide to ensure you have everything ready.
Returning your car: what happens on the day?
On collection day, make sure you return everything supplied with the vehicle. This includes both sets of keys, any load covers and, for an electric or hybrid vehicle, the charging cables.
Your lease provider will record the mileage. If you have gone over the agreed allowance or the adjusted allowance for an early return, you may need to pay an excess mileage charge.
The vehicle will also be inspected. You may be charged for damage that goes beyond fair wear and tear for a vehicle of its age and mileage. Before collection, give the vehicle a good clean and check that all supplied items are present. Taking care of any damage beforehand may help you avoid extra charges. For more advice about returning a leased vehicle, visit the British Vehicle Rental and Leasing Association (BVRLA) website. If you are unsure about anything, check your lease agreement or ask your lease provider to confirm the return requirements.