Extra Costs At the End of Your Lease

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Avoid Extra Costs at the End of Your Lease

The end of your car lease isn't when you should start thinking about extra costs that may occur at the end of your lease. These extra costs are things you need to think about before signing your auto lease on the dotted line. If you don't consider the end of lease costs from the start, you may be out $1,000's of dollars when it's your turn in to hand in the keys.

If you have already considered these possible costs and taken the leasing plunge then there are things that you may be able to have fixed on your own for a couple of bucks and avoid the excessive charges that the dealer may cost you like $200 to replace a freaking headlight that you could have bought at Advanced Auto for $30. $250 to dispose of your vehicle, $1000 for extra miles you put on the clock and $200 to replace the light bulb and the worn tires-lease agents constantly nickel-and-dime consumers when their lease runs out. Here's a rundown of what can trigger those fees, and some steps to take in self-defense.

Disposition fees 

If you decide against buying your leased vehicle at the end of your term, then you will be charged by the leasing company. Disposition fees are compensation to the dealer for selling or disposing of the vehicle when you are done with it. It is usually includes costs to prep the car for resale, administrative fees and other penalties. Before signing your lease, make sure you that you agree with this fee because it is not negotiable when you turn in your keys and the dealer can take this fee out of your refundable security deposit.

 

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Excess mileage charges 

There is a fee charged by almost all leasing companies for each mile over what was agreed upon in the contract. This penalty is sometimes as high as 25 cents per mile which can add up to $25 per one hundred miles over the contracted amount. Always check the "per mile" charges in your contract and be realistic when you sign. If the mileage limit is unrealistic for the amount of miles you drive in a year then make sure you negotiate for more contracted miles.

Remember to Read the Fine Print

The most important thing that you can do is be sure to read the fine print in your lease contract before signing. Anything you disagree with should be negotiated before signing.

Excess tear-and-wear charges 

Incidental damages can be unexpected to a certain extent when you turn in your leased car. Incidentals are excessive damage above and beyond the normal wear and tear that is deamed normal for the lease term. Unfortunately, there is not an industry standard for determining what is normal and excessive which leaves you in the hands of the leasing company when it comes time to add up the total. Leasing agents will set the wear and tear bar so high that a car that was just driven off the lot 5 minutes ago would possibly have incidentals charged for returning it. If you have any major damage that occurred before the end of the lease, you are probably better off getting the car fixed on your own than paying the excess wear-and-tear charges. If there is a dispute over the incidental fees charged by the leasing company, get an independent third party to perform a professional appraisal on the vehicle and possible repair costs for the damage.

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