Almost all salary sacrifice cars are leased cars, and so they will be on a two to four year contract and returned at the end of that period. You can normally choose to stay on your company’s salary sacrifice scheme for longer than this, but you will have to update your vehicle and contract terms and the payments may increase. When you reach the end of a lease contract you will return the car to the funder. This guide outlines everything you need to know about returning your leased salary sacrifice car.
Before you hand your vehicle back, there are a few things you’ll want to do to prepare yourself and the car for the handover. Firstly, we recommend looking at your contract to confirm important details. These include:
The contract end date will usually be the date the vehicle needs to physically be back in the hands of the funder, unless otherwise agreed with your employer. If this is a weekend day then you will usually need to return the car on the previous working day, so ensure you have checked in advance what day of the week the lease contract end date falls.
Hopefully you will be well aware of your mileage allowance and will have taken steps to remain within it for the duration of your contract. It would be wise to check the mileage allowance again, prior to the end of your salary sacrifice contract in order to prepare if you have exceeded it, and ensure you have the funds available for any mileage excess charges applicable.
Wear and tear guidelines outline the condition your car should be in upon return. The guidelines will tell you exactly what your funder considers fair wear and tear but will likely include as acceptable, the following:
• Minor scratches up to 25mm, as long as they don't expose the primer or bare metal and are able to be polished out. A maximum of four scratches per panel are allowed.
• The light lens can have some damage, but not if the glass is cracked and water is getting in.
• Light scratches on the windscreen as long as they don't block the driver's view heating elements, or any of the automated driver assistance systems.
• Alloy wheels scuffs up to 25mm.
• Tyres with some wear as long as they meet the legal requirements in the UK.
• Light stains on the driver's seat area as long as there are no rips, holes, or tears.
• Paintwork chips that have a diameter of up to 3mm and are not rusted, as long as they are limited to certain numbers per panel.
Once you’ve looked at the guidelines in your contract, you’ll want to check the car’s condition in line with each of the points to be sure that the vehicle doesn’t exhibit any examples of unacceptable wear and tear. If you do spot any damage that you think may be deemed unacceptable, then you should get in touch with your fleet manager to discuss whether they advise that you arrange for the necessary repairs to be completed before returning the car.
In advance of the collection date at the end of your lease, you should take the following steps to ensure things go according to plan on handover day:
All lease collections generally follow the same process, which is:
1. Your team contacts you to arrange collection in line with your contract end date (or delivery of your next car if you’re taking another vehicle).
2. The vehicle is inspected and a pre-collection inspection report is completed.
3. The vehicle is handed over to the funder’s agents (this may or may not happen at the same time as the inspection).
4. The vehicle is driven away.
5. The collection report is reviewed and any additional charges are passed onto your company.
6. Depending on your salary sacrifice agreement your company will then advise you of any additional charges you are responsible for.
Here at Xcite Salary Sacrifice, we’ll work with you to arrange collection as smoothly as possible and if you have any questions during the process then our team is here to help on 01722 548 200.
