When a leased car ends up in a police or authority pound, things become more complicated than with a privately owned vehicle. The driver may have been using the car day to day, but the lease company still holds the legal ownership. That means only certain people — usually those named on the lease or authorised by the leasing firm — can collect the vehicle. Understanding this distinction saves wasted trips and extra storage charges.

Who legally owns a leased car

In a lease agreement, the finance or leasing company remains the registered keeper and legal owner throughout the term. The driver listed on the lease has permission to use it but not to dispose of or authorise release without the company’s approval. For that reason, the pound will not usually hand the car over to a driver unless written consent has been provided by the leasing company.

What documents the pound will expect

To release a leased car, staff will ask to see proof that the driver collecting it has the company’s authorisation. Typically, that means:

• a signed letter or email from the leasing company confirming that the named driver is allowed to collect the vehicle;
• the vehicle registration and lease reference number;
• photographic ID for the driver (driving licence or passport);
• proof of insurance covering the journey away from the pound;
• the impound release notice issued by the police or authority.

Without written consent from the leasing company, most pounds may refuse to release the vehicle — even if the driver has been paying for it and has the keys.

Insurance complications

The biggest stumbling block is insurance. Impound-specific cover must be arranged in the name of the person collecting the car, but the policyholder also needs an insurable interest in the vehicle. Because leased cars are owned by finance companies, many insurers insist that the leasing firm gives permission in writing before issuing an impound policy. Without that, the policy could be invalid.

The safest route is for the leasing company to contact an approved broker directly or to provide the driver with written consent that can be shown to the insurer. This ensures the cover is accepted both by the pound and by the company that owns the vehicle.

If the leasing company wants to collect it

Some lease firms prefer to handle collection themselves. In that case, they will usually send a recovery driver or agent with ID and the relevant paperwork. Once the release is completed, they may recharge the costs to the customer or include them in future invoices. If the pound already has the company’s authorisation on file, this process is often faster than individual collection by the driver.

When the driver caused the impound

If the vehicle was seized because of an offence such as no insurance or careless driving, the leasing company may take back possession of the car and review the agreement. A serious breach of contract can result in early termination of the lease. The company is not obliged to continue supplying the vehicle if the driver’s actions caused the seizure or led to legal penalties.

Practical steps to avoid problems

• Contact the leasing company immediately after receiving notice of impoundment.
• Ask them to send a written release authorisation to the pound by email or fax.
• Arrange impound-specific insurance only after permission is confirmed.
• Take all original paperwork and ID when attending the pound.
• Keep copies of every document in case of future disputes over costs or damage.

Final word

A leased car can be released from an impound, but only with written authorisation from the leasing company and proof of valid insurance. Drivers cannot collect it on their own authority, even if the vehicle is registered in their name for day-to-day use. Contacting the leasing firm early, keeping records, and arranging recognised impound insurance will make the process smoother and prevent the situation from escalating into a contractual dispute.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.