Ways to save money when your lease is up
At the end of each lease term, the leasing company will nickel and dime the customer in several ways: $250 to dispose of the vehicle, $1,000 for additional miles driven, and $200 to repair the light bulb and worn tires.
A list of things that can cause those fines, as well as what to do in self-defense, is provided below.
Leasing firms will charge you a disposal fee if you opt not to purchase the car when your lease is up. The purpose of establishing this charge is to cover the costs associated with selling or disposing of the car. Typical components include administrative fees, the dealer’s preparation costs for the vehicle for resale, and any applicable penalties. Prior to signing, ensure that this cost is explicitly specified in the contract and that you are in agreement with it. Since the dealer can use your refundable security deposit to pay for this cost, you won’t have much leverage after the lease ends.
Overage fees: Almost every leasing company will tack on a surcharge for every mile above what was originally agreed upon in your contract. The accrual of this fine, which might reach 25 cents per mile, might be substantial. Make sure you know what the “per mile” charges are before signing a lease, and be honest with yourself about how much mileage you typically put on a vehicle to avoid paying thousands of dollars in over-mileage fines when the lease is up.
Talk to the dealer about increasing the mileage cap or getting an additional mileage contract if you feel the current limit is too low for your commuting needs.
Any accidental damage to the vehicle during the lease term may also incur additional costs at the conclusion of the lease, known as excess wear and tear charges. In this context, “damage” means anything over the expected amount of wear and tear on the vehicle.
Take note of how “deemed,” “excessive,” and “normal” are employed. Since the terms “excessive” and “normal” do not have a universally accepted definition, the responsibility for determining the amount due is with the leasing firm. Unsavory leasing brokers with unrealistically high standards for tear-and-wear will have you utterly dependent on them. Verify that you have read, comprehended, and agreed to these requirements by reading the description.
It might be more cost-effective to fix the damage to your leased vehicle yourself rather than paying the leasing agent’s exorbitant fees if it happens before the lease ends. Obtain a professional appraisal from an impartial third party stating the cost to repair any damaged parts or the amount by which the vehicle’s value is reduced due to wear and tear in the event that there is a disagreement over the charges at the conclusion of your lease.