- Vehicle Finance
- Managing your agreement
- Car Finance Options
- Service Plans
- Insurance & Warranty
- Electric Cars
- Electric cars. Made simple
- Used Vehicles
- Approved Used Vehicle Offers
- Who are VWFS
- Volkswagen Financial Services UK
- Contact us
- VWFS UK
- VWFS UK
- Volkswagen Bank
Your options at the end of your agreement depend on your finance product. You can find all the information you need below.
Your local retailer is always available to support you
If your agreement is ending soon and you are concerned about or affected by the delays to the delivery of new vehicles, resulting from the semiconductor chip shortages, please visit our FAQ page to find out more.
Solutions (PCP) end of contract process
At the end of a Solutions Personal Contract Plan (PCP) agreement you have the choice of 3 options:
1. Exchange your vehicle for a new one
If you want to move into the latest model, or maybe try a different vehicle altogether, your Solutions (PCP) agreement enables you to part-exchange your current vehicle for a new one. You will need to settle your existing agreement and then apply for a new one with us (subject to application and acceptance).
Your local retailer is on hand to help you through the whole process, ensuring a smooth transition from your current vehicle into your new one. You can contact them using the links below:
Volkswagen
Audi
SEAT
Škoda
Volkswagen Commercial Vehicles
Porsche
Bentley
2. Keep your current vehicle
Settle the agreement
If you would like to keep your current vehicle, you will need to pay your final balloon payment and option-to-purchase fee. These will both be collected automatically by Direct Debit, so you do not need to do anything.
Once your agreement has been settled we will automatically transfer ownership to you. The closing down period takes 10 days, after which time a letter will be sent to you to confirm that we no longer hold an interest in the vehicle.
Refinance your balloon payment
Alternatively, if you wish to keep the vehicle but want to spread the cost of the final payment we can consider arranging to refinance the final (balloon) payment for you, subject to a new finance application.
Important things to consider if you want to refinance your balloon payment:
- Applications to refinance can only be made by you as the customer
- You can put down a deposit so that the refinance balance is lower.
- The final (balloon) payment can be no less than £1000.00.
- The new monthly payment cannot be less than £50.00 per month.
- If approved, documentation can be sent via E-Signature so please ensure your email details with us are up to date.
- The agreement should not be in arrears.
- Your credit file will be checked as part of the application process.
Should you wish to be considered for this option, please contact us no later than one month before your agreement is due to end, so we can provide you with quotations and submit your application in enough time.
3. Hand the vehicle back
If you no longer wish to keep the vehicle at the end of the agreement, you can return it to us. You will still need to pay all the monthly payments and the option to purchase fee, and further charges may apply if you have exceeded your agreed mileage, or if there are any refurbishment costs following our inspection and collection process.
The BVRLA Fair Wear and Tear Guidelines provide the guidelines for how we inspect a vehicle for damage, so we recommend familiarising yourself with them to make sure you are comfortable with the process.
We will require a minimum of one months’ notice in order to arrange the vehicle collection so please contact us as soon as you know what option you want to take. Requests made after this date may result in a risk of you requiring additional Insurance, Road Tax or even an MOT, along with the possibility of the Direct Debit for the final (balloon) payment being taken.
Vehicle Collection Process
After you have informed us you wish to hand the vehicle back, our collection agents will contact you directly to arrange a convenient time for the Inspection and Collection of the vehicle via the contact details you have provided us with.
On the day of inspection please ensure that:
- You have told the DVLA you’ve sold the vehicle to a motor trader (either online or via post) and give the log book (V5C) to the inspector including the green ‘new keeper’ section. View our guide on updating your V5C logbook here
- The vehicle is clean, inside and out
- You have all the relevant documentation (e.g. service history, MOT certificate, V5C logbook etc.)
- You return all equipment supplied with the vehicle (e.g. charging cables, spare keys, satellite navigation, media, warning triangle, etc.)
- You have taken all of your belongings out of the vehicle
- If your vehicle is electric, please ensure it is fully charged before we arrive to collect it
- The vehicle has a valid MOT and is in a roadworthy condition
- You are present to sign the inspection report, or someone is present that your authorise to sign on your behalf
The inspector will record any damage (and cost of repair) or missing equipment/documentation and you’ll be asked to sign to confirm your acceptance of the report.
It may also be helpful to know:
- If you have a personalised number plate that you are intending to keep, you will need to take the relevant steps to have this removed prior to submitting your request to return the vehicle to us.
- The Direct Debit for your final (balloon) payment may be applied for if we are not given adequate notice of your decision to return the vehicle. So please contact us within the timescales detailed above.
- Inspection and collection of the vehicle happens on the same day, so if you want to get any repairs done to the vehicle they must be done prior to this date. Your local retailer will be able to support you in finding the best repairer for you.
- We will invoice you shortly after the collection of the vehicle if any charges for excess mileage or damage are applicable.
- The option to purchase fee will still be collected by Direct Debit so that we can sell the vehicle at auction on your behalf.
- Your vehicle needs to be taxed, insured, and have a valid MOT up until the point we collect it from you.
For any help or advice on these options, your local retailer is always on hand to support.
Whichever one you choose, please contact us as soon as you know to ensure that we have adequate time to address your preferred option and avoid applying for your Final (Balloon) Payment by Direct Debit unnecessarily.
If we do not hear from you we will automatically collect the balloon payment and option to purchase fee and close the agreement.
PCP damage charges guides can be found below:
Hire Purchase end of contract process
Once you’ve paid all your monthly payments and the option-to-purchase fee, the vehicle is yours to keep, or to use as part exchange for another vehicle.
There is no action required from you, we will automatically close the agreement after your final direct debit payment has been collected and send a clearance letter for your records.
If you have any questions, or want to discuss the possibility of a new vehicle, your local retailer is always happy to support:
Audi;
SEAT;
Lease Purchase end of contract process
At the end of your contract you have the following 3 options:
1. To keep the vehicle
You will need to pay the final balloon payment and the option-to-purchase fee, the car then belongs to you.
This will be done automatically so if you want to keep the vehicle you do not need to do anything, once the final payment has been collected by direct debit we will close the agreement and send you a final clearance letter.
2. To part exchange the vehicle for a new one
You can part exchange the vehicle to contribute towards paying your final balloon payment. Any shortfall in the part exchange value and final balloon payment will need to be covered by you, but any excess can be used towards a deposit on a new vehicle.
Your local retailer is able to discuss all of your options, and get you into a new vehicle:
3. Refinance your final 'balloon' repayment
If you want to keep the vehicle, you can choose to refinance your final balloon repayment over 12-60 months, subject to the age of your vehicle. At the end of your refinance contract you will pay the option to purchase fee and take full ownership of the vehicle.
You can apply to refinance your balloon here, and it is important to note that this will result in a new finance application and credit check being performed.
Contract Hire end of contract process
Once you have paid all outstanding rentals, you simply hand your vehicle back, subject to fair wear and tear and excess mileage charges.
And if you’re ready to replace your vehicle and want something sooner, visit VWFS DRIVE where we have vehicles that are in stock available on contract hire. Order your next vehicle online today.
Inspection and Collection Process
When your agreement comes to an end, your vehicle will undergo an end of contract inspection by our collection agents.
Our collection agents will attempt to make contact with you 6-8 weeks before the end of your agreement to arrange a convenient time to inspect and collect your vehicle.
Their trained inspector will inspect your vehicle in line with the British Vehicle Rental and Leasing Association (BVRLA) Fair Wear & Tear Guidelines, a copy of the guidelines can be found below.
Fair Wear and Tear Guideline (BVRLA Industry Standard)
The inspector will record any damage (and cost of repair) that falls outside of the guidelines and you’ll be asked to sign to confirm your acceptance of the inspection report.
RCH damage charges guides can be found below:
On the day of inspection, please ensure that:
- The vehicle is clean, inside and out.
- You have all the relevant documentation to hand supplied with the vehicle (user manual etc.)
- You return all equipment supplied with the vehicle (e.g. spare key, satellite navigation memory card, spare wheel, parcel shelf etc.)
- Your vehicle needs to be taxed, insured, and have a valid MOT up until the point we collect it from you.
Getting damage fixed
To make your end of contract process as smooth as possible, we will inspect and collect the vehicle on the same day. If you want to get any repairs done to your vehicle before the collection process you will need use an authorised VWFS repairer to ensure it meets the expected standards and avoid you being charged twice. Your retailer will be able to sign post the best repairer for you.
Extending your contract
It is possible to extend your agreement by up to 12 months. This is based on the same terms you are currently on and you would be given an additional mileage allowance proportionate to your current agreement. You can request an extension here.
Buying your vehicle
A Contract Hire agreement comes with no option to own the vehicle. However after the agreement has ended, our agents at British Car Auctions may offer the vehicle for sale. To find out more you can contact the BCA Driver Sales team at 01625 417991 or visit www.purchasemyvehicle.co.uk.
Finance Lease - Full Pay Out and Balloon- End of Contract Process
Selling your vehicle
With a Finance Lease agreement you are required to sell the vehicle to a non-financially related third party at some point during your agreement and the process of doing this must go through us.
If the vehicle is sold on for greater than the figure required to settle your finance, you will receive 100% of the excess, however if there is a shortfall we will invoice you for the difference.
You can obtain the current settlement figure here.
Once you have found an independent 3rd party to sell the vehicle to please click here to obtain a sales invoice. Key information to note:
- Invoices take 48 hours to be generated and will be issued to the third party directly.
- Payment for the invoice should be made to us directly (bank account details are included in the invoice) and upon receipt of this we can then look to terminate the agreement.
- If the invoice amount exceeds the outstanding finance, you will be sent 100% of the proceeds however should there be a shortfall we will invoice you for this separately
Extending your agreement
At the end of your agreement you do have the option to fall into your ‘secondary hiring’ period. If you are on our Finance Lease Balloon product, the balloon must be paid in full by yourself. The secondary hiring period consists of an annual rental (also known as a ‘Peppercorn’ rental) for a maximum of 5 years. The vehicle can be sold at any time during the 5 years secondary hire period, this must again be to third party.
Finance Lease Balloon only
If you do not wish for us to bill the balloon amount from your account on the end of contract date, you need to request a sales invoice at least 2 weeks before the end of contract date.
You also have the option to extend on a short term basis providing the balloon has not billed. If you would like to explore this option, please contact the team on FinanceLease@vwfs.co.uk.
Your local retailer
Your local retailer is there to support you through the end of contract process. You can get in contact with them below:
Audi;
SEAT;