What are lease returns and what advantages do they have for the fleet?

Imagine you have leased several company cars whose contract is about to expire. Your fleet only has a small budget and you are dependent on the vehicles. This is exactly where leasing returns come into play. But what are lease returns? What advantages and disadvantages do they have and what should you look out for when buying these vehicles?

What are leasing returns?

In many companies, leasing company cars is part of everyday business. A new vehicle is required and leased for a certain period of time. At the end of the contract, it is returned to the leasing company. Depending on the type of leasing agreement, the vehicle is 12-60 months old when the contract expires. If the car is not released, it is returned to the leasing company and becomes a lease return. If companies want to buy the vehicle, they usually only have to pay a fraction of the original purchase price. The so-called residual value.

For a long time, lease returns did not have a good image. The cars were too old, the equipment outdated and therefore not suitable as company vehicles. These prejudices are no longer tenable today, as the market for used company cars is booming. Interrupted supply chains and the associated long waiting times for new cars, but also the high equipment standards of “young used cars” make this possible.

Lease returns can temporarily compensate for delivery problems with new vehicles and thus ensure corporate mobility.

What are the advantages of leasing returns?

Most fleet managers are familiar with lease returns from their own fleet. They are aware of all damage and are informed about the status of maintenance.
The vehicle has a complete service history, as all the documents relating to repairs are in your hands.
Company car drivers receive a high-quality vehicle that suits them.
As a company, you can use such a vehicle to quickly, easily and, above all, cheaply increase your stock of company cars.
If you buy a lease return that was not previously in your fleet, you can still be sure that the vehicle has a seamless history, as it usually had one previous owner.

What are the disadvantages of leasing returns?

The vehicle may appear to be in good condition on the outside, but have a high mileage because it was used as a pool vehicle, for example.
The trolley may show visible wear.
The car has been involved in an accident in the past, which has reduced its value.

Last but not least: Can I lease a leasing return?

Yes, you can lease these vehicles again. However, you should check the leasing conditions in the contract carefully and have the car assessed by an expert. If the residual value is particularly favorable and the vehicle is in good condition, a purchase is probably the better option.