Your PCP or Lease Is Ending: What Are Your Options?

At the end of a PCP you can hand the car back, pay the optional final payment and keep it, or part exchange it. At the end of a lease you hand the car back, because you never have the option to own it. You are not obliged to take another new car from the same dealer in either case.

What is the difference between a PCP ending and a lease ending?

A PCP is a purchase agreement with an optional final payment, so you have a choice about ownership. A lease, also called personal contract hire, is a long-term rental and the car always goes back. MoneyHelper explains both: PCP and personal contract hire.

What happens if I hand the car back?

The finance company inspects the car. You can be charged for two things:

• Excess mileage. The pence per mile rate is in your agreement. Multiply it by the miles you expect to be over.

• Damage beyond fair wear and tear. Ask the finance company which standard it uses and for a copy of it. Small marks consistent with the car's age are normally accepted. Kerbed wheels, dents, torn trim and missing keys or service records are the usual charges.

Look the car over a couple of months before it goes back, in daylight and when it is clean. It can be worth getting a quote to put things right first, and making sure the servicing is up to date. Our service centre can quote for servicing and repairs.

Should I pay the final payment and keep the car?

Compare the final payment with what the car is actually worth. If the car is worth more, keeping it or part exchanging it makes sense. If it is worth less, handing it back usually costs you less.

If you want to keep the car but do not have the lump sum, see refinancing a PCP balloon payment.

Can I part exchange it somewhere else?

Yes, on a PCP. Any dealer can ask your lender for a settlement figure, settle the finance and put any equity towards your next car. You can compare offers before you commit. Our guide to part exchanging a car on finance explains the steps.

Is a used car a sensible next step?

It can be. New cars usually lose value fastest in their first few years, so a car that is a few years old has already taken that drop. Against that, a used car may have less warranty left and will need tyres, brakes and servicing sooner. Budget for running costs as well as the payment. Our running cost calculator can help.

Common questions

When should I start planning?

About three months before the end date. That gives you time to get a settlement figure and a valuation, sort out any repairs and compare your options without a deadline pressing.

Can I end a PCP early?

You can settle early at any time, and you may have the right to hand the car back once half of the total amount payable has been paid. See paying car finance off early.

Can I sell a leased car?

No. The leasing company owns it throughout and it has to be returned to them.

Talk it through in Barnsley

anycolourcar.com is a used car dealer and service centre in Barnsley, South Yorkshire. You can get a valuation to see whether you have equity, browse cars in stock or read about finance. Call Sales on 01226 574410 or the service centre on 01226 574321.

We are a credit broker, not a lender. Finance is subject to status and affordability checks.

This guide is general information, not financial advice. Updated October 2026.